S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2880
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT to amend the public authorities law, the public service law, and
   the executive law, in relation  to  reforming  the  telecommunications
   sector  of  the  New  York economy, by creating a broadband authority,
   authorizing statewide cable franchises for the purposes of competitive
   cable service, promoting the wide-spread development of  high-capacity
   broadband internet access, and increasing the availability and quality
   of  services  in  this  key economic development area and ensuring the
   safety, reliability and affordability of telecommunications services
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "omnibus telecommunications reform act of 2017".
   § 2. Legislative findings. 1. a. It is and has been the  long-standing
 policy  of the state of New York that every resident and business in the
 state of New York has a right to have equal physical and  social  access
 to  adequate  telecommunications  services at just and reasonable rates,
 because universal access to the benefits of telephony is fundamental  to
 effective  communication,  quality of life, economic development, public
 safety and security, and democratic  participation.  Telecommunications,
 however,  is  undergoing  dramatic changes with new technologies driving
 the ways people communicate with one another. No matter  the  source  or
 vehicle  by which people communicate with each other, the people of this
 state have the right to adequate service at just and  reasonable  rates.
 Therefore,  all telecommunications services must meet the highest stand-
 ards of  quality,  reliability,  and  safety--including  protecting  and
 expanding the system of emergency 911 service--which requires sufficient
 investment  in  telecommunications  infrastructure and, as many years of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07364-01-7
              

 S. 2880                             2
 
 experience have shown, adequate staffing  provided  by  trained,  career
 employees operating under the applicable safety codes and regulations.
   b.  While  the  state's  long-standing  mission  has  been  to provide
 universal, affordable and reliable service to all New Yorkers, all citi-
 zens of the state do not have equal access to  communications  technolo-
 gies  that  are  becoming  the standard bearers for the 21st century. In
 fact, the state lags behind in deploying communication networks that are
 the foundation of modern telecommunications. The lack of  deployment  of
 high-capacity  telecommunications  infrastructure services ("broadband")
 in rural, underserved, unserved, economically distressed and other areas
 of the state is affected with a public interest; the rates, services and
 operations of cable television companies  are  affected  with  a  public
 interest and it is imperative that the state fairly regulate cable tele-
 vision  services in the interest of the public, and; the public interest
 is furthered by comprehensive action in the area of  telecommunications,
 and by the state's continued promotion of universally available telecom-
 munications  services  of  adequate  service  quality  and at affordable
 rates, particularly in rural, high-cost and low income  areas,  and  the
 state's entry into promoting the universal availability and physical and
 social  access  to  high-quality  broadband  and advanced communications
 services at affordable rates.
   c.  The  deployment  of  high-capacity  broadband   telecommunications
 networks  and  advanced communications networks throughout New York will
 promote improvements in healthcare, public safety,  education,  consumer
 choice, and the economy.
   d.  State  action  and  public-private  partnerships will be needed to
 deepen investment in, promote demand for,  stimulate  adoption  of,  and
 remove  barriers  to the development of universally deployed world-class
 high-capacity broadband networks, providing  services  to  business  and
 residential  consumers  in  all areas of the state at competitive prices
 with adequate service quality.
   e. Reasonably unfettered access of  the  citizenry  to  the  maximally
 diverse  Internet is in the public interest, consistent however with the
 need or company choice of telecommunications providers to  block,  limit
 or  otherwise  restrict the passage of electronic mail messages or other
 content that transmit, portray, describe, represent or otherwise contain
 matters such as child pornography or similar obscenity,  other  unlawful
 material,  threats  of serious bodily harm, threats to the public safety
 and homeland security, threats of death  to  individuals  or  groups  of
 individuals,  viruses  or  similar  computer generated programs or codes
 that have the potential to harm computer hardware and/or software and/or
 networks, excessive unsolicited commercial email that degrades or inter-
 feres with or harms the normal  operation  of  broadband  networks,  and
 other  similar  types  or  forms  of material or software (the foregoing
 examples are illustrative, not  exhaustive  of  such  threats  to  users
 and/or the network).
   2.  a.  New  cable television services regulation is necessary to: (i)
 promote adequate, affordable and efficient cable television  service  to
 the  citizens  and  residents  of  the state; (ii) encourage the optimum
 development of the educational, government and community-service  poten-
 tials  of the cable television medium; (iii) provide just and reasonable
 rates for cable television service  without  geographic  discrimination;
 (iv)  protect  the  interests  of  the  municipalities  of this state in
 relation to the issuance of municipal consents  for  the  operations  of
 cable  television  companies  in those jurisdictions; (v) to protect the
 right of consumers to  access  the  lawful  internet  content  of  their

 S. 2880                             3
 
 choice, to run applications and use services of their choice, subject to
 the  requirements  of  law  enforcement,  and to connect their choice of
 legal devices that do not harm the  network;  and  (vi)  cooperate  with
 other states and with the federal government in promoting and coordinat-
 ing  efforts  to  regulate  cable  television  effectively in the public
 interest.
   b. Competition in the provisioning of cable service is  emerging  with
 the convergence of preexisting and new technologies for providing voice,
 video  and  data  services, which results in increased investment in the
 state, lower prices and improved service offerings for consumers.
   c. Increased investment and the potential for competition in the cable
 service market through the provisioning of new  communications  services
 and   deployment   of  advanced  communications  infrastructure  further
 enhances economic opportunities, public safety, and the  overall  health
 and well-being of the residents of the state.
   d.  State-issued  franchises  for  the provision of cable service will
 promote and facilitate the deployment of advanced technologies  and  new
 services to all classes of communities and protect New York's ability to
 compete  in  the national and international marketplace for industry and
 jobs.
   e. Modifying existing cable service regulation through  the  enactment
 of  new standards and procedures that provide consumers with access to a
 competitive facilities-based cable market  and  also  preserves  munici-
 palities  historic  authority  to manage public rights-of-way, collect a
 franchise fee up to five percent of  gross  revenue,  administer  public
 educational and government access channels, enforce consumer protections
 and  ensure competitive cable services are delivered in a nondiscrimina-
 tory manner is warranted in this state.
   f. Nothing in this act shall be seen to limit or reduce the protection
 afforded to cable  television  customers,  broadband  internet  services
 customers, telephone customers, and customers of advanced communications
 services  generally,  and  it  is  in the public interest to ensure that
 customers continue to be provided a high level  of  customer  protection
 and customer service in a more competitive market.
   3.  Therefore, the legislature declares that the state needs to funda-
 mentally reform the three key pillars  of  its  vast  telecommunications
 system--telephone,  broadband  internet  access and cable television--to
 provide 21st Century technology to all New Yorkers that is  safe,  reli-
 able and affordable.
   §  3.    Article  11  and  sections  4000, 4001 and 4002 of the public
 authorities law, article 11 as renumbered by chapter 168 of the laws  of
 1975  and  sections  4000, 4001 and 4002 as renumbered by chapter 182 of
 the laws of 2005, are renumbered article 12 and sections 4200, 4201  and
 4202 and a new article 11 is added to read as follows:
                                ARTICLE 11
                      BROADBAND DEVELOPMENT AUTHORITY
 SECTION 4100. SHORT TITLE.
         4101. BROADBAND DEVELOPMENT AUTHORITY.
         4102. DEFINITIONS.
         4103. POWERS OF THE AUTHORITY.
         4104. BOARD OF DIRECTORS.
         4105. BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL.
         4106. APPLICATIONS FOR BROADBAND DEPLOYMENT FINANCING; RESPONSI-
                 BILITIES  OF THE APPLICANT TO PROVIDE SAFE, RELIABLE AND
                 AFFORDABLE SERVICE.
         4107. BONDS AND NOTES OF THE AUTHORITY.

 S. 2880                             4
 
         4108. BONDS AND NOTES; PERSONAL LIABILITY.
         4109. RIGHTS  OF  AUTHORITY  TO  FULFILL  TERMS OF AGREEMENT NOT
                 LIMITED, ALTERED, OR IMPAIRED.
         4110. REMEDIES OF BONDHOLDERS AND NOTEHOLDERS.
         4111. GRANTS OR LOANS OF PUBLIC  OR  PRIVATE  FUNDS  OR  IN-KIND
                  MATERIAL.
         4112. EXEMPTION FROM TAXES AND ASSESSMENTS.
         4113. BROADBAND AND ADVANCED COMMUNICATIONS DEVELOPMENT FUND.
         4114. APPROPRIATIONS BY ANY GOVERNMENT OR MUNICIPAL CORPORATION.
         4115. CONVEYANCE,  LEASE  OR  TRANSFER  OF PROPERTY BY A CITY OR
                 COUNTY TO THE AUTHORITY.
         4116. ACTIONS AGAINST THE AUTHORITY.
         4117. AUDIT POWER AND CONTRACT APPROVAL BY THE COMPTROLLER.
         4118. ANNUAL REPORT.
         4119. EFFECT OF INCONSISTENT PROVISIONS.
         4120. SEVERABILITY.
   § 4100. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "BROADBAND DEVELOPMENT AUTHORITY ACT".
   § 4101. BROADBAND DEVELOPMENT AUTHORITY.  1. THE NEW YORK STATE BROAD-
 BAND  DEVELOPMENT  AUTHORITY  IS  ESTABLISHED  IN ORDER TO ENCOURAGE THE
 PROVISION OF AFFORDABLE AND RELIABLE  BROADBAND  SERVICES  AND  NETWORKS
 THAT WILL:
   (A) ENSURE THE LONG TERM GROWTH OF AND THE ENHANCEMENT AND DELIVERY OF
 SERVICES  BY  BUSINESS, EDUCATIONAL, MEDICAL, COMMERCIAL, NONPROFIT, AND
 GOVERNMENTAL ENTITIES IN UNSERVED, UNDERSERVED AND DISTRESSED  AREAS  IN
 NEW YORK;
   (B) BENEFIT RESIDENTIAL, COMMERCIAL, PUBLIC, GOVERNMENTAL, AND NONPRO-
 FIT  ENTITIES IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS IN NEW YORK;
 AND
   (C) TO ADVANCE THE AVAILABILITY  OF,  AND  PROMOTE  THE  PHYSICAL  AND
 SOCIAL  ACCESS  TO, BROADBAND AND OTHER ADVANCED COMMUNICATIONS SERVICES
 TO ALL CONSUMERS, INCLUDING THOSE IN LOW  INCOME,  RURAL,  INSULAR,  AND
 HIGH COST AREAS AT RATES THAT ARE REASONABLY COMPARABLE TO THOSE CHARGED
 IN  HIGH-DENSITY  URBAN AREAS AND/OR IN THE AREA OF THE STATE WHERE SUCH
 SERVICES ARE MOST COMPETITIVELY PRICED; AND TO INCREASE ACCESS  TO,  AND
 THE  UBIQUITY  OF, ADVANCED TELECOMMUNICATIONS SERVICES AVAILABLE TO THE
 PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER.
   2. THE AUTHORITY SHALL ADMINISTER THE BROADBAND  DEVELOPMENT  PROGRAM,
 AND  SHALL,  THROUGH  THE  BROADBAND  DEVELOPMENT AND DEPLOYMENT COUNCIL
 CREATED IN SECTION FORTY-ONE HUNDRED FIVE OF THIS ARTICLE, WORK TO BUILD
 AND FACILITATE LOCAL TECHNOLOGY AND SOCIAL ACCESS PLANNING ENTITIES, AND
 PARTNERSHIPS WITH BROADBAND INTERNET SERVICES PROVIDERS  AND  TECHNOLOGY
 COMPANIES,  AND  THE  PRIVATE  AND NONPROFIT SECTORS GENERALLY, AND SUCH
 OTHER PROGRAMS AS ARE REASONABLY CALCULATED TO FACILITATE  THE  AUTHORI-
 TY'S ACHIEVEMENT OF ITS STATUTORY DUTIES.
   § 4102. DEFINITIONS. 1. "AUTHORITY" MEANS THE NEW YORK STATE BROADBAND
 DEVELOPMENT  AUTHORITY  CREATED  UNDER  SECTION FORTY-ONE HUNDRED ONE OF
 THIS ARTICLE.
   2. "UNSERVED AREA" MEANS ANY PART OF A  MUNICIPALITY  WITHOUT  READILY
 AND  GENERALLY AVAILABLE RETAIL CONSUMER ACCESS TO A FACILITIES-BASED OR
 FIXED WIRELESS BROADBAND SERVICES PROVIDER. FOR  THE  PURPOSES  OF  THIS
 SECTION,  THE  DEFINITION OF WIRELESS BROADBAND SERVICES PROVIDERS SHALL
 NOT INCLUDE SUBSCRIPTION SATELLITE SERVICE.
   3. "UNDERSERVED AREA" MEANS ANY PART OF A MUNICIPALITY WITHOUT READILY
 AND GENERALLY AVAILABLE RETAIL CONSUMER ACCESS TO AT LEAST TWO  OR  MORE
 NONAFFILIATED  FACILITIES-BASED OR FIXED WIRELESS BROADBAND TELECOMMUNI-

 S. 2880                             5
 
 CATIONS SERVICES PROVIDERS.  WIRELESS  SHALL  NOT  INCLUDE  SUBSCRIPTION
 SATELLITE SERVICE.
   4. "BROADBAND" MEANS THE TRANSMISSION OF INFORMATION, BETWEEN OR AMONG
 POINTS  SPECIFIED  BY  THE  USER,  WITH OR WITHOUT CHANGE IN THE FORM OR
 CONTENT OF THE INFORMATION AS SENT AND RECEIVED,  AT  MINIMUM  RATES  OF
 TRANSMISSION  OF  TWO MEGABITS PER SECOND DOWNSTREAM AND ONE MEGABIT PER
 SECOND UPSTREAM, OR ONE HUNDRED  FIFTY  PERCENT  OF  THOSE  TRANSMISSION
 RATES  DEFINED  BY THE FEDERAL COMMUNICATIONS COMMISSION AS "BROADBAND,"
 OR AT THOSE SYNCHRONOUS UPSTREAM AND DOWNSTREAM  TRANSMISSION  RATES  AS
 MAY BE RECOMMENDED BY THE BROADBAND COUNCIL FROM TIME TO TIME, WHICHEVER
 IS FASTEST IN SPEED.
   5.  "BROADBAND  CARRIER"  MEANS  ANY  PROVIDER  OF BROADBAND SERVICES,
 EXCEPT AGGREGATORS OF BROADBAND SERVICES,  AS  DEFINED  IN  SECTION  TWO
 HUNDRED TWENTY-SIX OF THE NINETEEN HUNDRED NINETY-SIX TELECOMMUNICATIONS
 ACT.
   6.  "BROADBAND  INFRASTRUCTURE"  MEANS  ALL  EQUIPMENT AND FACILITIES,
 INCLUDING ALL CHANGES, MODIFICATIONS, AND EXPANSIONS TO EXISTING FACILI-
 TIES, AS WELL AS THE CUSTOMER PREMISES EQUIPMENT USED TO PROVIDE  BROAD-
 BAND,  AND  ANY  SOFTWARE  INTEGRAL  TO  OR  RELATED  TO THE OPERATIONS,
 SUPPORT, FACILITATION, OR INTERCONNECTION OF SUCH  EQUIPMENT,  INCLUDING
 UPGRADES, AND ANY INSTALLATION, OPERATIONS AND SUPPORT, MAINTENANCE, AND
 OTHER FUNCTIONS REQUIRED TO SUPPORT THE DELIVERY OF BROADBAND.
   7.  "BROADBAND  SERVICE"  MEANS  THE  OFFERING  OF BROADBAND FOR A FEE
 DIRECTLY TO THE PUBLIC, OR TO SUCH CLASSES OF USERS  AS  TO  BE  READILY
 AVAILABLE DIRECTLY TO THE PUBLIC, REGARDLESS OF THE FACILITIES USED.
   8.  "OPEN NETWORK" MEANS ANY BROADBAND INFRASTRUCTURE WHICH IS OPEN TO
 ANY THIRD PARTY USERS IN A NONDISCRIMINATORY MANNER ON A FAIR AND  EQUI-
 TABLE BASIS USING PUBLICLY AVAILABLE ACCESS TARIFFS FOR SERVICES.
   9.  "OPEN  NETWORK  INTERFACES"  MEANS  THE  TECHNICAL AND OPERATIONAL
 MEANS, MANNERS, AND METHODS FOR ANY THIRD PARTY ACCESS TO THE  BROADBAND
 INFRASTRUCTURE,  WHICH  SHALL  BE  PROVIDED  ON  THE  BASIS OF GENERALLY
 ACCEPTABLE INDUSTRY STANDARDS AVAILABLE AT THE TIME OF ACCESS.
   10. "DISTRESSED AREA" MEANS:
   (A) A CENSUS TRACT OR TRACTS OR BLOCK NUMBERING AREA OR AREAS OR  SUCH
 CENSUS TRACT OR BLOCK NUMBERING AREA CONTIGUOUS THERETO WHICH, ACCORDING
 TO THE MOST RECENT CENSUS DATA AVAILABLE, HAS:
   (I)  A  POVERTY  RATE OF AT LEAST TWENTY PERCENT FOR THE YEAR TO WHICH
 THE DATA RELATES OR AT LEAST  TWENTY  PERCENT  OF  HOUSEHOLDS  RECEIVING
 PUBLIC ASSISTANCE; AND
   (II)  AN  UNEMPLOYMENT  RATE  OF  AT LEAST ONE AND A QUARTER TIMES THE
 STATEWIDE UNEMPLOYMENT RATE FOR THE YEAR TO WHICH THE DATA RELATES; OR
   (B) A CITY, TOWN, VILLAGE OR COUNTY WITHIN A CITY WITH A POPULATION OF
 ONE MILLION OR MORE FOR WHICH:
   (I) THE RATIO OF THE FULL VALUE PROPERTY WEALTH, AS DETERMINED BY  THE
 COMPTROLLER  FOR  THE  YEAR NINETEEN HUNDRED NINETY, PER RESIDENT TO THE
 STATEWIDE AVERAGE FULL VALUE PROPERTY WEALTH PER RESIDENT; AND
   (II) THE RATIO OF THE INCOME PER RESIDENT; AS SHOWN  IN  THE  NINETEEN
 HUNDRED  NINETY CENSUS TO THE STATEWIDE AVERAGE INCOME PER RESIDENT; ARE
 EACH FIFTY-FIVE PERCENT OR LESS OF THE STATEWIDE AVERAGE; OR
   (C) AN AREA WHICH WAS DESIGNATED AN EMPIRE ZONE  PURSUANT  TO  ARTICLE
 EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW.
   11. "DARK FIBER" MEANS FIBER OPTIC CABLE THAT IS NOT LIGHTED BY LASERS
 OR OTHER ELECTRONIC EQUIPMENT.
   12. "COMPTROLLER" MEANS THE COMPTROLLER OF THE STATE OF NEW YORK.
   13.  "BOARD" MEANS THE BOARD OF DIRECTORS CREATED UNDER SECTION FORTY-
 ONE HUNDRED FOUR OF THIS ARTICLE.

 S. 2880                             6
 
   14. "FUND" MEANS THE BROADBAND AND ADVANCED COMMUNICATIONS DEVELOPMENT
 FUND CREATED UNDER SECTION FORTY-ONE HUNDRED THIRTEEN OF THIS ARTICLE.
   15. "BROADBAND COUNCIL" MEANS THE BROADBAND DEVELOPMENT AND DEPLOYMENT
 COUNCIL AS CREATED UNDER SECTION FORTY-ONE HUNDRED FIVE OF THIS ARTICLE.
   16.  "CURRENT  GENERATION BROADBAND SERVICE" MEANS THE TRANSMISSION OF
 SIGNALS AT A RATE OF AT LEAST ONE MILLION FIVE HUNDRED THOUSAND BITS PER
 SECOND TO THE SUBSCRIBER AND AT LEAST  TWO  HUNDRED  THOUSAND  BITS  PER
 SECOND FROM THE SUBSCRIBER.
   17.  "NEXT  GENERATION  BROADBAND  SERVICE"  MEANS THE TRANSMISSION OF
 SIGNALS AT A RATE OF AT LEAST TWENTY-TWO MILLION BITS PER SECOND TO  THE
 SUBSCRIBER AND AT LEAST TEN MILLION BITS PER SECOND FROM THE SUBSCRIBER.
   18. "QUALIFIED EQUIPMENT" MEANS EQUIPMENT CAPABLE OF PROVIDING CURRENT
 GENERATION  BROADBAND  SERVICES OR NEXT GENERATION BROADBAND SERVICES AT
 ANY TIME TO EACH SUBSCRIBER WHO IS UTILIZING SUCH SERVICES.
   19. "QUALIFIED EXPENDITURE" MEANS ANY AMOUNT CHARGEABLE TO THE CAPITAL
 ACCOUNT WITH RESPECT TO  THE  PURCHASE  AND  INSTALLATION  OF  QUALIFIED
 EQUIPMENT,  INCLUDING  ANY  UPGRADES  THERETO, FOR WHICH DEPRECIATION IS
 ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVENUE CODE.
   20. "UNDERSERVED SUBSCRIBER" MEANS A RETAIL  CONSUMER  RESIDING  IN  A
 DWELLING LOCATED IN AN UNSERVED OR UNDERSERVED AREA.
   21.  "UNDERSERVED  STRUCTURE"  MEANS  A MULTI-FAMILY HOUSING UNIT OR A
 MULTIPLE-DWELLING HOUSING UNIT LOCATED IN  AN  UNSERVED  OR  UNDERSERVED
 AREA.
   § 4103. POWERS OF THE AUTHORITY. 1. THE GENERAL POWERS OF THE AUTHORI-
 TY  UNDER  THIS  ARTICLE  INCLUDE  ALL  THOSE NECESSARY TO CARRY OUT AND
 EFFECTUATE THE PURPOSES OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED  TO,
 THE FOLLOWING:
   (A)   TO  INVEST  ANY  MONEY  OF  THE  AUTHORITY  AT  THE  AUTHORITY'S
 DISCRETION, IN ANY OBLIGATIONS DETERMINED PROPER BY THE  AUTHORITY,  AND
 TO NAME AND USE DEPOSITORIES FOR THE AUTHORITY'S MONEY;
   (B) TO RECEIVE AND DISTRIBUTE FEDERAL, STATE OR LOCAL FUNDING, INCLUD-
 ING GRANTS, LOANS, AND APPROPRIATIONS;
   (C) TO MAKE EXPENDITURES NECESSARY TO CARRY OUT THE AUTHORITY'S DUTIES
 UNDER THIS ARTICLE, INCLUDING PAYING THE AUTHORITY'S OPERATING EXPENSES;
   (D)  TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED, COMPLAIN AND DEFEND
 IN ALL COURTS;
   (E) TO ADOPT, USE AND ALTER AT WILL A CORPORATE SEAL;
   (F) TO ACQUIRE, PURCHASE, HOLD, USE, LEASE OR OTHERWISE DISPOSE OF ANY
 PROJECT AND PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE  OR  INTANGIBLE,
 OR  ANY  INTEREST  THEREIN  NECESSARY  OR DESIRABLE FOR CARRYING OUT THE
 PURPOSES OF THE AUTHORITY, AND, WITHOUT LIMITATION OF THE FOREGOING,  TO
 LEASE  AS LESSEE, ANY PROJECT AND ANY PROPERTY, REAL, PERSONAL OR MIXED,
 OR ANY INTEREST THEREIN, AT SUCH ANNUAL RENTAL AND  ON  SUCH  TERMS  AND
 CONDITIONS  AS  MAY BE DETERMINED BY THE BOARD AND TO LEASE AS LESSOR TO
 ANY PERSON, ANY PROJECT AND  ANY  PROPERTY,  REAL,  PERSONAL  OR  MIXED,
 TANGIBLE OR INTANGIBLE, OR ANY INTEREST THEREIN, AT ANY TIME ACQUIRED BY
 THE  AUTHORITY,  WHETHER  WHOLLY  OR PARTIALLY COMPLETED, AT SUCH ANNUAL
 RENTAL AND ON SUCH TERMS AND CONDITIONS AS  MAY  BE  DETERMINED  BY  THE
 BOARD,  AND  TO SELL, TRANSFER OR CONVEY ANY PROPERTY, REAL, PERSONAL OR
 MIXED, TANGIBLE OR INTANGIBLE OR  ANY  INTEREST  THEREIN,  AT  ANY  TIME
 ACQUIRED OR HELD BY THE AUTHORITY ON SUCH TERMS AND CONDITIONS AS MAY BE
 DETERMINED BY THE BOARD OF THE AUTHORITY;
   (G)  TO PLAN, DEVELOP, UNDERTAKE, CARRY OUT, CONSTRUCT, IMPROVE, REHA-
 BILITATE, REPAIR, FURNISH, MAINTAIN, AND OPERATE PROJECTS;
   (H) TO ADOPT BYLAWS FOR THE MANAGEMENT AND REGULATION OF  ITS  AFFAIRS
 CONSISTENT WITH THIS CHAPTER;

 S. 2880                             7
 
   (I) TO ESTABLISH AND MAINTAIN SATELLITE OFFICES WITHIN NEW YORK;
   (J)  TO  FIX,  ALTER,  CHARGE,  AND  COLLECT RATES, RENTALS, AND OTHER
 CHARGES FOR THE USE OF PROJECTS OF, OR FOR THE SALE OF  PRODUCTS  OF  OR
 FOR  THE  SERVICES RENDERED BY, THE AUTHORITY, AT RATES TO BE DETERMINED
 BY IT FOR THE PURPOSE OF PROVIDING FOR THE PAYMENT OF  THE  EXPENSES  OF
 THE  AUTHORITY,  THE  PLANNING,  DEVELOPMENT, CONSTRUCTION, IMPROVEMENT,
 REHABILITATION, REPAIR, FURNISHING, MAINTENANCE, AND  OPERATION  OF  ITS
 PROJECTS  AND  PROPERTIES,  THE  PAYMENT  OF THE COSTS ACCOMPLISHING ITS
 TASKS;
   (K) THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON  ITS  OBLIGATIONS,
 AND  TO FULFILL THE TERMS AND PROVISIONS OF ANY AGREEMENTS MADE WITH THE
 PURCHASERS OR HOLDERS OF ANY SUCH OBLIGATIONS;
   (L) TO BORROW MONEY, MAKE AND ISSUE BONDS, AND TO SECURE  THE  PAYMENT
 OF  ALL BONDS, OR ANY PART THEREOF, BY PLEDGE OR DEED OF TRUST OF ALL OR
 ANY OF ITS REVENUES, RENTALS, AND RECEIPTS OR OF ANY PROJECT OR  PROPER-
 TY,  REAL,  PERSONAL  OR  MIXED, TANGIBLE OR INTANGIBLE, OR ANY INTEREST
 THEREIN, AND TO MAKE AGREEMENTS WITH THE PURCHASERS OR HOLDERS  OF  SUCH
 BONDS  OR  WITH OTHERS IN CONNECTION WITH ANY SUCH BONDS, WHETHER ISSUED
 OR TO BE ISSUED, AS THE AUTHORITY DEEMS ADVISABLE,  AND  IN  GENERAL  TO
 PROVIDE  FOR THE SECURITY FOR THE BONDS AND THE RIGHTS OF HOLDERS THERE-
 OF;
   (M) TO MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS  NECESSARY  OR
 INCIDENTAL  TO  THE  PERFORMANCE  OF  ITS DUTIES, THE FURTHERANCE OF ITS
 PURPOSES AND THE EXECUTION TO ITS POWERS UNDER THIS  ARTICLE,  INCLUDING
 AGREEMENTS WITH ANY PERSON OR FEDERAL AGENCY;
   (N)  TO EMPLOY, IN ITS DISCRETION, CONSULTANTS, ATTORNEYS, ARCHITECTS,
 ENGINEERS, ACCOUNTANTS, FINANCIAL EXPERTS,  INVESTMENT  BANKERS,  SUPER-
 INTENDENTS,  MANAGERS  AND  SUCH  OTHER  EMPLOYEES  AND AGENTS AS MAY BE
 NECESSARY, AND TO FIX THEIR COMPENSATION TO BE PAYABLE FROM  FUNDS  MADE
 AVAILABLE TO THE AUTHORITY;
   (O)  TO  PLEDGE  OR  OTHERWISE  ENCUMBER ALL OR ANY OF THE REVENUES OR
 RECEIPTS OF THE AUTHORITY AS SECURITY FOR ALL OR ANY OF THE  OBLIGATIONS
 OF THE AUTHORITY; AND
   (P) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
 POWERS GRANTED TO IT BY LAW.
   2.  THE  PHYSICAL  ACCESS  POWERS  OF THE AUTHORITY UNDER THIS ARTICLE
 INCLUDE ALL THOSE NECESSARY TO CARRY OUT AND EFFECTUATE THE PURPOSES  OF
 THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:
   (A)  TO  MAKE  LOANS  OR  GRANTS TO BROADBAND DEVELOPERS AND BROADBAND
 OPERATORS, AND DEVELOPERS AND OPERATORS OF ADVANCED COMMUNICATIONS, THAT
 WILL ACQUIRE, CONSTRUCT, MAINTAIN, AND OPERATE ALL OR PART OF THE BROAD-
 BAND INFRASTRUCTURE SERVING UNSERVED, UNDERSERVED AND DISTRESSED AREAS;
   (B) TO SET CONSTRUCTION, OPERATION, AND FINANCING  STANDARDS  FOR  THE
 BROADBAND  INFRASTRUCTURE  IN CONNECTION WITH AUTHORITY FINANCING AND TO
 PROVIDE FOR INSPECTIONS TO DETERMINE COMPLIANCE WITH THOSE STANDARDS;
   (C) TO INVESTIGATE, EVALUATE, AND ACCESS THE CURRENT BROADBAND INFRAS-
 TRUCTURE AND THE FUTURE BROADBAND INFRASTRUCTURE NEEDS OF THE STATE;
   (D) TO TAKE ACTIONS REASONABLY CALCULATED TO RESULT IN  INFRASTRUCTURE
 CONSTRUCTION, ENHANCEMENT, EXCHANGES, EXPANSION, LEASES, SWAPS AND OTHER
 AGREEMENTS OR ARRANGEMENTS GIVING RISE TO SERVICE OR COMPETITIVE SERVICE
 TO UNDERSERVED STRUCTURES AND UNDERSERVED SUBSCRIBERS; AND
   (E) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
 POWERS GRANTED TO IT BY LAW.
   3.  THE  SOCIAL  ACCESS  POWERS  OF  THE  AUTHORITY UNDER THIS ARTICLE
 INCLUDE ALL THOSE NECESSARY TO CARRY OUT AND EFFECTUATE THE PURPOSES  OF
 THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:

 S. 2880                             8
 
   (A)  TO  PROVIDE  OPERATING ASSISTANCE TO MAKE BROADBAND SERVICES MORE
 AFFORDABLE TO BROADBAND DEVELOPERS, BROADBAND OPERATORS,  AND  BROADBAND
 CUSTOMERS  IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS, IN CONJUNCTION
 WITH BROADBAND INFRASTRUCTURE FINANCED BY THE AUTHORITY;
   (B)  TO  ENCOURAGE  AND  PARTICIPATE IN AGGREGATION STRATEGIES FOR THE
 BROADBAND SERVICES OF ALL PUBLIC ENTITIES AND NONPROFIT CORPORATIONS  IN
 THE  STATE  TO  MAXIMIZE  THE  INTERCONNECTIVITY AND EFFICIENCIES OF THE
 BROADBAND INFRASTRUCTURE;
   (C) TO RECEIVE AND ACCEPT FROM ANY FEDERAL OR PRIVATE AGENCY,  FOUNDA-
 TION, CORPORATION, ASSOCIATION OR PERSON GRANTS TO BE EXPENDED IN ACCOM-
 PLISHING THE OBJECTIVES OF THE AUTHORITY, AND TO RECEIVE AND ACCEPT FROM
 NEW  YORK  OR ANY STATE, AND ANY MUNICIPALITY, COUNTY OR OTHER POLITICAL
 SUBDIVISION THEREOF AND FROM ANY OTHER SOURCE, AID OR  CONTRIBUTIONS  OF
 EITHER  MONEY,  PROPERTY, OR OTHER THINGS OF VALUE, TO BE HELD, USED AND
 APPLIED ONLY FOR THE PURPOSES FOR WHICH SUCH  GRANTS  AND  CONTRIBUTIONS
 MAY BE MADE;
   (D)  TO  RENDER  ADVICE  AND  ASSISTANCE,  AND TO PROVIDE SERVICES, TO
 INSTITUTIONS OF HIGHER EDUCATION AND TO OTHER PERSONS PROVIDING SERVICES
 OR FACILITIES FOR SCIENTIFIC  AND  TECHNOLOGICAL  RESEARCH  OR  GRADUATE
 EDUCATION, FOCUSED UPON DEVELOPMENT OF ADVANCED COMMUNICATIONS TECHNOLO-
 GIES,  PROVIDED  THAT  CREDIT  TOWARDS  A DEGREE, CERTIFICATE OR DIPLOMA
 SHALL BE GRANTED ONLY IF SUCH EDUCATION IS PROVIDED IN CONJUNCTION  WITH
 AN INSTITUTION OF HIGHER EDUCATION AUTHORIZED TO OPERATE IN NEW YORK;
   (E)  TO TAKE SUCH OTHER ACTIONS IT DEEMS NECESSARY OR CONVENIENT, THAT
 ARE REASONABLY CALCULATED TO RESULT IN ENHANCED, INITIAL OR  COMPETITIVE
 SOCIAL  ACCESS  TO  GENERALLY  AVAILABLE  RETAIL  BROADBAND  SERVICES OF
 ADEQUATE QUALITY, AT AFFORDABLE PRICES, FOR UNDERSERVED  STRUCTURES  AND
 UNDERSERVED SUBSCRIBERS; AND
   (F) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT TO CARRY OUT THE
 POWERS GRANTED TO IT BY LAW.
   §  4104.  BOARD  OF DIRECTORS. 1. THE AUTHORITY SHALL BE GOVERNED BY A
 BOARD OF DIRECTORS  CONSISTING  OF  SEVENTEEN  MEMBERS,  INCLUDING:  THE
 COMMISSIONERS  OF  THE  DEPARTMENT  OF  ECONOMIC DEVELOPMENT, THE EMPIRE
 STATE DEVELOPMENT CORPORATION, THE PUBLIC  SERVICE  COMMISSION  AND  THE
 STATE  OFFICE  FOR  TECHNOLOGY, OR THEIR DESIGNEES, THE GOVERNOR, SENATE
 MAJORITY LEADER, SPEAKER OF THE ASSEMBLY, AND THE COMPTROLLER  OR  THEIR
 DESIGNEES.  TWO MEMBERS OF THE BOARD SHALL BE PROPOSED BY THE RESPECTIVE
 UNIONS OF THE WIRELINE AND WIRELESS TELECOMMUNICATIONS INDUSTRIES OF NEW
 YORK. THE REMAINING MEMBERS OF THE  BOARD  SHALL  BE  APPOINTED  BY  THE
 GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE, FROM A LIST OF INDI-
 VIDUALS  NOMINATED BY THE PRINCIPAL ESTABLISHED INDUSTRY GROUPS, TECHNI-
 CAL COUNSELS, OR ACADEMIC PROFESSIONAL GROUPS OF NEW YORK. THE  APPOINT-
 EES  SHALL  BE  THE  FOLLOWING:  ONE MEMBER FROM EACH TELECOMMUNICATIONS
 INDUSTRY GROUPING, TO BE NOMINATED BY THE NEW YORK-BASED WIRELINE  TELE-
 PHONE INDUSTRY, THE NEW YORK-BASED WIRELESS CELLULAR TELEPHONE INDUSTRY,
 AND  THE NEW YORK-BASED CABLE TELEVISION/BROADBAND INDUSTRY AND WIRELESS
 INTERNET PROVIDER INDUSTRY; THE PRESIDENT OF THE STATE UNIVERSITY SYSTEM
 OF NEW YORK, TWO PRESIDENTS OF MAJOR NEW YORK RESEARCH UNIVERSITIES, ONE
 OF WHOM SHALL REPRESENT PRIVATE RESEARCH UNIVERSITIES AND  ONE  OF  WHOM
 SHALL  REPRESENT  PUBLIC RESEARCH UNIVERSITIES; AND ONE MEMBER WHO SHALL
 BE NOMINATED BY NEW YORK'S FINANCIAL SERVICES COMMUNITY.
   2. THE GOVERNMENT MEMBERS SHALL SERVE ON THE BOARD FOR  TERMS  COINCI-
 DENT  WITH THEIR TERMS OF OFFICE. THE INITIAL TERM OF THE NON-GOVERNMEN-
 TAL MEMBERS SHALL EXPIRE ON DECEMBER THIRTY-FIRST,  TWO  THOUSAND  NINE-
 TEEN,   AND   ALL  SUBSEQUENT  NONGOVERNMENTAL  MEMBER  TERMS  SHALL  BE
 COINCIDENT WITH THE TERM OF THE GOVERNOR  WHO  APPOINTED  SUCH  MEMBERS.

 S. 2880                             9
 
 VACANCIES  IN THE MEMBERSHIP OF THE BOARD SHALL BE FILLED BY APPOINTMENT
 BY THE GOVERNOR FOR THE UNEXPIRED PORTION OF  THE  TERM.  NO  NONGOVERN-
 MENTAL  MEMBER OF THE BOARD SHALL BE ELIGIBLE TO SERVE FOR MORE THAN TWO
 SUCCESSIVE  TERMS,  PROVIDED HOWEVER THAT AFTER THE EXPIRATION OF A FOUR
 YEAR TERM, SUCH MEMBERS MAY BE APPOINTED TO AND SERVE UP  TO  TWO  ADDI-
 TIONAL  TERMS. MEMBERS OF THE BOARD SHALL BE SUBJECT TO THE PUBLIC OFFI-
 CERS LAW, AND SHALL SERVE AT THE PLEASURE OF THE GOVERNOR.   IMMEDIATELY
 AFTER  APPOINTMENT,  THE  MEMBERS  OF  THE  BOARD  SHALL  ENTER UPON THE
 PERFORMANCE OF THEIR DUTIES.
   3. THE BOARD SHALL ELECT ANNUALLY FROM AMONG ITS MEMBERS A CHAIRPERSON
 AND VICE-CHAIRPERSON. THE BOARD SHALL ALSO ANNUALLY ELECT  A  SECRETARY,
 WHO  NEED  NOT BE A BOARD MEMBER, AND MAY ALSO ELECT SUCH OTHER SUBORDI-
 NATE OFFICERS WHO NEED NOT BE MEMBERS OF THE BOARD AS IT DEEMS NECESSARY
 AND PROPER. THE CHAIRPERSON, OR IN HIS OR HER ABSENCE,  THE  VICE-CHAIR-
 PERSON,  SHALL PRESIDE OVER ALL MEETINGS OF THE BOARD. IN THE ABSENCE OF
 BOTH THE CHAIRPERSON AND VICE-CHAIRPERSON, THE  BOARD  SHALL  APPOINT  A
 CHAIRPERSON PRO TEMPORE, WHO SHALL PRESIDE AT SUCH MEETINGS.
   4.  THE  BOARD  SHALL  EMPLOY  A PRESIDENT OF THE AUTHORITY, WHO SHALL
 SERVE AT THE PLEASURE OF THE BOARD, TO DIRECT THE DAY-TO-DAY  OPERATIONS
 AND  ACTIVITIES OF THE AUTHORITY AND CARRY OUT SUCH DUTIES AND POWERS AS
 MAY BE CONFERRED UPON HIM OR HER BY THE BOARD.  THE  PRESIDENT  AND  ALL
 EMPLOYEES  OF  THE AUTHORITY SHALL BE COMPENSATED IN THE MANNER PROVIDED
 BY THE BOARD, PROVIDED HOWEVER THAT SUCH COMPENSATION SHALL  NOT  EXCEED
 THE MEDIAN SALARIES OF EMPLOYEES IN EQUIVALENT TITLES OF NEW YORK "STATE
 AUTHORITIES" AS DEFINED IN THIS CHAPTER.
   §  4105.  BROADBAND  DEVELOPMENT  AND DEPLOYMENT COUNCIL. 1. THE BOARD
 SHALL ESTABLISH, WITHIN THIRTY  DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  A SEVENTEEN MEMBER TECHNICAL ADVISORY COMMITTEE FROM REPRESEN-
 TATIVES RECOMMENDED BY TECHNOLOGY COUNCILS, INDUSTRY AND BUSINESS  ASSO-
 CIATIONS,  AND  COLLEGE  AND  UNIVERSITY  PRESIDENTS, TO BE KNOWN AS THE
 BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL. FIVE  MEMBERS  SHALL  HAVE
 KNOWLEDGE,  SKILLS  AND  EXPERTISE  IN THE NEEDS OF INDUSTRY, FIVE SHALL
 HAVE KNOWLEDGE, SKILLS  AND  EXPERTISE  IN  SPECIFIC  TELECOMMUNICATIONS
 TECHNOLOGY  AREAS,  AND  TWO  SHALL  BE  COMMUNITY  REPRESENTATIVES FROM
 UNSERVED AND/OR UNDERSERVED AREAS. THE CHIEF TECHNICAL OFFICERS FOR  THE
 PUBLIC  SERVICE  COMMISSION,  THE STATE OFFICE FOR TECHNOLOGY, THE STATE
 OFFICE FOR EMERGENCY MANAGEMENT AND THE STATE OFFICE OF  SCIENCE,  TECH-
 NOLOGY  AND ACADEMIC RESEARCH, AND THE CHIEF INFORMATION OFFICER FOR THE
 STATE OF NEW YORK, SHALL ALSO SERVE ON THIS COMMITTEE.
   2. (A) WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF  THIS  SECTION,  THE
 BROADBAND  COUNCIL  SHALL  CREATE,  COORDINATE, OR LIAISE WITH EXISTING,
 MUNICIPAL AND/OR COUNTY-LEVEL  SOCIAL  ACCESS  COUNCILS  TO  STUDY,  AND
 SUBSEQUENTLY  REPORT  TO  THE AUTHORITY UPON: (I) THE LOCATION, SIZE AND
 POPULATION OF UNSERVED, UNDERSERVED  AND  DISTRESSED  AREAS  WITHIN  THE
 RESPECTIVE  MUNICIPALITIES  AND COUNTIES; (II) A PROPOSED LIST OF SOCIAL
 ACCESS PROJECTS FOR THE MUNICIPALITIES AND COUNTIES; (III) THE  PRESENCE
 OF  NON-GOVERNMENTAL  ORGANIZATIONS AND FEDERAL 501C3 ORGANIZATIONS THAT
 COULD WORK COOPERATIVELY WITH THE AUTHORITY ON SOCIAL  ACCESS  PROJECTS;
 (IV)  SUCH  OTHER  MATTERS  AS THE BROADBAND COUNCIL AND LOCAL BROADBAND
 DEVELOPMENT COUNCILS BELIEVE NECESSARY TO EFFECTUATING  THE  MISSION  OF
 THE AUTHORITY.
   (B)  WITHIN  NINETY  DAYS  OF  THE EFFECTIVE DATE OF THIS SECTION, THE
 BROADBAND COUNCIL SHALL STUDY AND REPORT TO THE AUTHORITY UPON:
   (I) THE AVAILABILITY OF ANY EXISTING FEDERAL, STATE  AND  LOCAL  FUNDS
 THAT  CAN  BE  USED  OR  RE-PURPOSED  TO  FUND BROADBAND DEVELOPMENT AND

 S. 2880                            10
 
 PROMOTE  UNIVERSAL  ACCESS  TO  BROADBAND  AND  ADVANCED  COMMUNICATIONS
 SERVICES IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS;
   (II)  COMMERCIALLY  REASONABLE  INVESTMENT BENCHMARKS THAT IT BELIEVES
 ARE NECESSARY TO  DETERMINE  BETWEEN  REASONABLY  EQUALLY  VALUABLE  AND
 IMPERATIVE BROADBAND DEVELOPMENT PROJECTS;
   (III)  AN APPROPRIATE SET OF METRICS BY WHICH TO DETERMINE THE QUALITY
 OF A BROADBAND BUILDOUT PROJECT, AND WHETHER  SUCH  BUILDOUT  WAS  BEING
 COMPLETED  WITHIN THE TIME SPAN UPON WHICH THE AUTHORITY CONDITIONED THE
 GRANT OF ANY FUNDS TOWARD SUCH BUILDOUT;
   (IV) THE AVAILABILITY, DESIRABILITY AND UTILITY OF A SET OF  STANDARD-
 IZED  METRICS  FOR SERVICE QUALITY, SPEED, AND RELIABILITY THAT SHALL BE
 APPLIED TO THE NETWORKS BUILT WITH FUNDS FROM THE AUTHORITY; AND
   (V) THE AVAILABILITY OF SURPLUS COMPUTERS AND OTHER BROADBAND TELECOM-
 MUNICATIONS EQUIPMENT IN THE INVENTORIES OF STATE AND LOCAL  AUTHORITIES
 THAT MIGHT BE DONATED TO THE AUTHORITY FOR USE IN ENHANCING PHYSICAL AND
 SOCIAL ACCESS TO BROADBAND IN THE STATE.
   3.    THE  COUNCIL  SHALL  ACT  AS  LIAISON, AND BINDING MEDIATOR WHEN
 REQUESTED, BETWEEN ANY DEPLOYMENT PROJECTS AND OWNERS OF  RIGHTS-OF-WAY,
 EASEMENTS  OR INFRASTRUCTURE NECESSARY TO PROMOTE OR ESTABLISH BROADBAND
 SERVICE IN UNSERVED, UNDERSERVED AND DISTRESSED AREAS.
   4. THE COUNCIL SHALL DETERMINE AND RECOMMEND TO THE BOARD PROJECTS FOR
 THE EXPENDITURE OF FUNDS  FROM  THE  FUND,  WITH  SPECIAL  ATTENTION  TO
 PROJECTS USING MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES AS CONTRAC-
 TORS OR SUB-CONTRACTORS, AND TO PROJECTS PROVIDING PRIVATE SECTOR MATCH-
 ING  FUNDING  AT  RATIOS  OF  THREE  TO ONE PRIVATE TO PUBLIC FUNDING OR
 GREATER.
   5. THE COUNCIL SHALL RECOMMEND TO  THE  BOARD,  ON  AN  ANNUAL  BASIS,
 LEGISLATION  THAT IT DETERMINES WOULD BE REASONABLY NECESSARY TO FURTHER
 PROMOTE BROADBAND DEVELOPMENT, ENHANCE ECONOMIC DEVELOPMENT ARISING FROM
 SUCH BROADBAND DEVELOPMENT, AND PROTECT AND ENHANCE ACCESS OF  CONSUMERS
 TO  E911  AND  OTHER  PUBLIC  SAFETY  SERVICES AND ENTITIES BY METHOD OF
 BROADBAND AND ADVANCED COMMUNICATIONS SERVICES.
   6. (A) A MEMBER OF THE BOARD OR OFFICER, EMPLOYEE,  OR  AGENT  OF  THE
 AUTHORITY SHALL DISCHARGE THE DUTIES OF HIS OR HER POSITION IN A NONPAR-
 TISAN  MANNER,  WITH GOOD FAITH, AND WITH THAT DEGREE OF DILIGENCE, CARE
 AND SKILL THAT AN ORDINARY PRUDENT PERSON WOULD EXERCISE  UNDER  SIMILAR
 CIRCUMSTANCES  IN  A  LIKE POSITION. IN DISCHARGING THE DUTIES OF HIS OR
 HER POSITION, A MEMBER OF THE BOARD OR AN OFFICER, EMPLOYEE, OR AGENT OF
 THE AUTHORITY, WHEN ACTING IN GOOD FAITH, MAY RELY UPON THE  OPINION  OF
 COUNSEL  FOR  THE AUTHORITY, UPON THE REPORT OF AN INDEPENDENT APPRAISER
 SELECTED WITH REASONABLE CARE BY THE BOARD, OR UPON FINANCIAL STATEMENTS
 OF THE AUTHORITY REPRESENTED TO THE MEMBER  OF  THE  BOARD  OR  OFFICER,
 EMPLOYEE,  OR  AGENT  OF THE AUTHORITY TO BE CORRECT BY THE PRESIDENT OR
 THE OFFICER OF THE AUTHORITY HAVING CHARGE OF ITS BOOKS OR  ACCOUNT,  OR
 STATED  IN  A WRITTEN REPORT BY A CERTIFIED PUBLIC ACCOUNTANT OR FIRM OF
 CERTIFIED PUBLIC ACCOUNTANTS TO FAIRLY REFLECT THE  FINANCIAL  CONDITION
 OF THE AUTHORITY.
   (B)  A MEMBER OF THE BROADBAND DEVELOPMENT COUNCIL SHALL DISCHARGE THE
 DUTIES OF HIS OR HER POSITION IN A NONPARTISAN MANNER, WITH GOOD  FAITH,
 AND  WITH  THAT  DEGREE  OF  DILIGENCE,  CARE AND SKILL THAT AN ORDINARY
 PRUDENT PERSON WOULD EXERCISE UNDER  SIMILAR  CIRCUMSTANCES  IN  A  LIKE
 POSITION.
   (C)  A MEMBER OF A SOCIAL ACCESS COUNCIL SHALL DISCHARGE THE DUTIES OF
 HIS OR HER POSITION IN A NONPARTISAN MANNER, WITH GOOD FAITH,  AND  WITH
 THAT DEGREE OF DILIGENCE, CARE AND SKILL THAT AN ORDINARY PRUDENT PERSON
 WOULD EXERCISE UNDER SIMILAR CIRCUMSTANCES IN A LIKE POSITION.

 S. 2880                            11
 
   §  4106. APPLICATIONS FOR BROADBAND DEPLOYMENT FINANCING; RESPONSIBIL-
 ITIES OF THE APPLICANT TO PROVIDE SAFE, RELIABLE AND AFFORDABLE SERVICE.
 IN ADDITION TO RULES PROMULGATED BY THE AUTHORITY AS WELL AS  THE  OTHER
 REQUIREMENTS  ESTABLISHED IN THIS ARTICLE, AS PART OF AN APPLICATION FOR
 FINANCING  UNDER THIS CHAPTER, A BROADBAND DEVELOPER OR BROADBAND OPERA-
 TOR MUST FILE WITH THE AUTHORITY:
   1. A PARTICIPATION PLAN FOR MINORITY AND WOMAN-OWNED BUSINESSES;
   2. A COMMUNITY WIDE OUTREACH PLAN TO EDUCATE THE PUBLIC  WITH  RESPECT
 TO THE AVAILABILITY OF BROADBAND SERVICES;
   3.  A CONSTRUCTION AND MAINTENANCE PLAN THAT SHALL DETAIL THE CAPACITY
 OF ANY BROADBAND NETWORK OR NETWORKS BUILT WITH FUNDING FROM THE AUTHOR-
 ITY, AND WHETHER SUCH NETWORKS SHALL MAINTAIN FULL UPLOAD  AND  DOWNLOAD
 SPEEDS WHEN SUBSCRIBED TO ONE HUNDRED PERCENT OF CAPACITY;
   4.  A  DETAILED PLAN SHOWING HOW SUCH BUILDOUT FUNDED BY THE AUTHORITY
 SHALL ADDRESS OR EXCEED  THE  CURRENT  AGGREGATE  DEMAND  FOR  BROADBAND
 SERVICES  IN THE AREA OF PROPOSED BUILDOUT AS DETERMINED BY THE AUTHORI-
 TY, COUNCIL, CYBER SECURITY  AND  CRITICAL  INFRASTRUCTURE  COORDINATION
 OFFICE  ("CSCIC")  AND  PUBLIC  SERVICE  COMMISSION'S MAPPING AND DEMAND
 ASSESSMENT ANALYSES AND REPORTS;
   5. SUCH OTHER REQUIREMENTS AS MAY BE RECOMMENDED TO THE  AUTHORITY  BY
 THE COUNCIL AND THE PUBLIC SERVICE COMMISSION;
   6. A PLAN FOR FOLLOWING THE PRINCIPLES OF NEUTRAL NETWORKS AS REQUIRED
 IN SECTION FORTY-ONE HUNDRED THIRTEEN OF THIS ARTICLE; AND
   7. A PLAN CONTAINING DETAILED METRICS SETTING FORTH TIME TO COMPLETION
 FOR EACH STAGE OF ITS PROPOSED BUILDOUT, THE SPEEDS TO BE OFFERED ON AND
 ACROSS  ITS  NETWORK, AND SUCH OTHER METRICS AS THE BROADBAND COUNCIL OR
 BOARD MAY PROPOSE. THE AUTHORITY MAY NOT APPROVE AN APPLICATION UNLESS A
 PLAN IS SUBMITTED UNDER THIS SECTION AND UNLESS THE REQUIREMENTS OF THIS
 SECTION ARE MET.
   § 4107. BONDS AND NOTES OF THE AUTHORITY.  1. THE AUTHORITY SHALL HAVE
 THE POWER AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE NEGOTIABLE
 BONDS OR NOTES FOR ANY OF ITS CORPORATE PURPOSES FOR UP TO  ONE  HUNDRED
 FIFTY  MILLION  DOLLARS ANNUALLY FOR FIVE YEARS TO DO ALL OF THE FOLLOW-
 ING:
   (A) PAY THE DEVELOPMENT  COSTS  ASSOCIATED  WITH  ACQUIRING,  LEASING,
 CONSTRUCTING,  MAINTAINING,  AND OPERATING THE BROADBAND INFRASTRUCTURE,
 IN UNSERVED, UNDERSERVED, AND DISTRESSED AREAS;
   (B) MAKE LOANS TO PERSONS FOR DEVELOPMENT COSTS;
   (C) MAKE LOANS TO PERSONS TO MAKE PURCHASES RELATED TO  THE  BROADBAND
 INFRASTRUCTURE;
   (D) PAY THE INTEREST ON BONDS AND NOTES OF THE AUTHORITY;
   (E) ESTABLISH RESERVES TO SECURE THE BONDS AND NOTES OF THE AUTHORITY;
 AND
   (F)  MAKE  OTHER  EXPENDITURES  NECESSARY TO CARRY OUT THE AUTHORITY'S
 DUTIES UNDER THIS ARTICLE, INCLUDING  THE  PAYMENT  OF  THE  AUTHORITY'S
 OPERATING EXPENSES.
   THE  BONDS  AND  NOTES  SHALL BE IN A FORM, BEAR INTEREST AT A RATE OR
 RATES, BE IN THE DENOMINATIONS, CARRY REGISTRATION PRIVILEGES, BE  PAYA-
 BLE, AND BE SUBJECT TO THE TERMS OF REDEMPTION AS PROVIDED IN THE RESOL-
 UTION  DESCRIBED IN SUBDIVISION TWO OF THIS SECTION. THE BONDS AND NOTES
 OF THE AUTHORITY MAY BE SOLD BY THE AUTHORITY AT PUBLIC OR PRIVATE SALES
 AT PRICES AS THE AUTHORITY DETERMINES.
   2. A RESOLUTION RELATING TO AUTHORIZING NOTES OR BONDS MAY CONTAIN ANY
 OF THE FOLLOWING PROVISIONS, WHICH SHALL BE A PART OF THE CONTRACT  WITH
 THE HOLDERS OF THE NOTES OR BONDS:

 S. 2880                            12
 
   (A) PLEDGING ALL OR ANY PART OF THE REVENUES OF THE AUTHORITY, AND ALL
 OR  ANY  PART  OF THE MONEY RECEIVED IN PAYMENT OF LOANS AND INTEREST ON
 LOANS, AND OTHER MONEY RECEIVED OR TO BE RECEIVED TO SECURE THE  PAYMENT
 OF THE NOTES OR BONDS;
   (B) PLEDGING ALL OR ANY PART OF THE ASSETS OF THE AUTHORITY, INCLUDING
 MORTGAGES  AND  OBLIGATIONS OBTAINED BY THE AUTHORITY IN CONNECTION WITH
 ITS PROGRAMS, TO SECURE THE PAYMENT OF THE NOTES OR BONDS;
   (C) PLEDGING ANY LOAN, GRANT, OR CONTRIBUTION FROM A GOVERNMENT  ENTI-
 TY;
   (D)  THE  USE  AND  DISPOSITION OF THE GROSS INCOME FROM CONTRACTS AND
 LEASES OF THE AUTHORITY;
   (E) LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS OF SALE OF  NOTES
 OR  BONDS  MAY BE APPLIED AND PLEDGING PROCEEDS TO SECURE THE PAYMENT OF
 THE NOTES OR BONDS;
   (F) LIMITATIONS ON THE ISSUANCE OF  ADDITIONAL  NOTES  OR  BONDS,  THE
 TERMS  UPON  WHICH  ADDITIONAL NOTES OR BONDS MAY BE ISSUED AND SECURED,
 AND THE REFUNDING OF OUTSTANDING OR OTHER NOTES OR BONDS;
   (G) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
 NOTEHOLDERS  OR  BONDHOLDERS  MAY BE AMENDED OR ABROGATED, THE AMOUNT OF
 NOTES OR BONDS THE HOLDERS OF WHICH SHALL CONSENT TO  THE  AMENDMENT  OR
 ABROGATION, AND THE MANNER IN WHICH THE CONSENT IS TO BE GIVEN;
   (H)  VESTING  IN  A  TRUSTEE OR TRUSTEES PROPERTY, RIGHTS, POWERS, AND
 DUTIES IN TRUST AS THE AUTHORITY MAY DETERMINE, WHICH MAY INCLUDE ANY OF
 THE RIGHTS, POWERS, AND DUTIES OF THE TRUSTEE APPOINTED BY THE BONDHOLD-
 ERS UNDER THIS ARTICLE AND LIMITING OR ABROGATING THE RIGHT OF THE BOND-
 HOLDERS TO APPOINT A TRUSTEE UNDER THIS SECTION OR LIMITING THE  RIGHTS,
 POWERS, AND DUTIES OF THE TRUSTEE.
   3. NO MORE THAN FIFTY PERCENT OF ANY PAYMENTS TO THE AUTHORITY FOR USE
 OF RIGHTS-OF-WAY UNDER ITS CONTROL OR SUPERVISION SHALL BE DEEMED REVEN-
 UES  OF THE AUTHORITY. UP TO SEVENTY-FIVE PERCENT OF MONIES ARISING FROM
 RIGHT-OF-WAY USE PAYMENTS MAY BE USED TO FUND SOCIAL ACCESS PROJECTS  OF
 THE  AUTHORITY,  OR  MAY  BE  CONTRIBUTED TO A STATE FUND ESTABLISHED TO
 GUARANTEE UNIVERSAL AND AFFORDABLE BROADBAND SERVICE TO, WITHOUT LIMITA-
 TION, UNDERSERVED SUBSCRIBERS AND STRUCTURES. ANY  REMAINING  UNEXPENDED
 MONIES  ARISING  FROM  RIGHT-OF-WAY  USE  PAYMENTS MAY BE PLEDGED BY THE
 AUTHORITY TO SECURE THE PAYMENT OF NOTES AND BONDS.
   § 4108. BONDS AND NOTES; PERSONAL LIABILITY. THE MEMBERS OF THE  BOARD
 OR  ANY  PERSON  EXECUTING THE NOTES OR BONDS UNDER THIS ARTICLE ARE NOT
 LIABLE PERSONALLY ON THE NOTES OR  BONDS  OR  SUBJECT  TO  ANY  PERSONAL
 LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE.
   § 4109. RIGHTS OF AUTHORITY TO FULFILL TERMS OF AGREEMENT NOT LIMITED,
 ALTERED,  OR IMPAIRED. THIS STATE PLEDGES AND AGREES WITH THE HOLDERS OF
 ANY NOTES OR BONDS ISSUED UNDER THIS ARTICLE, THAT THE  STATE  WILL  NOT
 LIMIT  OR  ALTER THE RIGHTS VESTED IN THE AUTHORITY TO FULFILL THE TERMS
 OF ANY AGREEMENTS MADE WITH THE HOLDERS, OR IN ANY WAY IMPAIR THE RIGHTS
 AND REMEDIES OF THE HOLDERS UNTIL THE  NOTES  OR  BONDS,  TOGETHER  WITH
 EARNED  INTEREST,  WITH INTEREST ON ANY UNPAID INSTALLMENTS OF INTEREST,
 AND ALL COSTS AND EXPENSES IN CONNECTION WITH ANY ACTION  OR  PROCEEDING
 BY  OR  ON  BEHALF  OF  THE  HOLDERS,  ARE FULLY MET AND DISCHARGED. THE
 AUTHORITY IS AUTHORIZED TO INCLUDE THIS  PLEDGE  AND  AGREEMENT  OF  THE
 STATE  IN  ANY  AGREEMENT  WITH THE HOLDERS OF NOTES OR BONDS UNDER THIS
 ARTICLE.
   § 4110. REMEDIES OF BONDHOLDERS AND NOTEHOLDERS. 1. IF  THE  AUTHORITY
 DEFAULTS  IN  THE PAYMENT OF PRINCIPAL OR INTEREST OF ANY NOTES OR BONDS
 WHEN DUE, WHETHER AT MATURITY OR  UPON  CALL  FOR  REDEMPTION,  AND  THE
 DEFAULT CONTINUES FOR A PERIOD OF THIRTY DAYS, OR IF THE AUTHORITY FAILS

 S. 2880                            13

 OR  REFUSES  TO  COMPLY  WITH THIS ARTICLE, OR DEFAULTS IN ANY AGREEMENT
 MADE WITH THE HOLDERS OF ANY NOTES OR BONDS, THE HOLDERS OF  TWENTY-FIVE
 PERCENT  IN  AGGREGATE  PRINCIPAL  AMOUNT  OF  THE  NOTES  OR BONDS THEN
 OUTSTANDING  MAY  APPLY  TO THE COURT OF CLAIMS FOR THE APPOINTMENT OF A
 TRUSTEE TO REPRESENT THE HOLDERS OF THE NOTES OR BONDS.
   2. A TRUSTEE APPOINTED UNDER THIS ARTICLE MAY, AND  UPON  THE  WRITTEN
 REQUEST  OF  THE  HOLDERS  OF TWENTY-FIVE PERCENT IN AGGREGATE PRINCIPAL
 AMOUNT OF THE NOTES OR BONDS SHALL, DO ANY OF THE FOLLOWING:
   (A) ENFORCE ALL RIGHTS OF THE NOTEHOLDERS  OR  BONDHOLDERS,  INCLUDING
 THE  RIGHT  TO  REQUIRE  THE  AUTHORITY TO PERFORM ITS DUTIES UNDER THIS
 ARTICLE;
   (B) BRING SUIT UPON THE NOTES OR BONDS;
   (C) REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT WERE THE TRUSTEE  OF  AN
 EXPRESS TRUST FOR THE HOLDERS OF THE NOTES OR BONDS;
   (D)  ENJOIN ANY ACTS OR THINGS THAT MAY BE UNLAWFUL OR IN VIOLATION OF
 THE RIGHTS OF THE HOLDERS OF THE NOTES OR BONDS; AND
   (E) DECLARE ALL THE NOTES OR BONDS DUE AND PAYABLE.
   3. BEFORE DECLARING THE PRINCIPAL OF NOTES OR BONDS DUE  AND  PAYABLE,
 THE  TRUSTEE  SHALL  FIRST  GIVE  THIRTY  DAYS' NOTICE IN WRITING TO THE
 GOVERNOR, TO THE AUTHORITY, TO  THE  COMPTROLLER  AND  TO  THE  ATTORNEY
 GENERAL.
   4.  THE TRUSTEE HAS ALL OF THE POWERS NECESSARY OR APPROPRIATE FOR THE
 GENERAL REPRESENTATION OF BONDHOLDERS OR NOTEHOLDERS IN THE  ENFORCEMENT
 AND PROTECTION OF THEIR RIGHTS.
   5.  AN  ACTION  UNDER  THIS  SECTION  SHALL BE BROUGHT IN THE COURT OF
 CLAIMS.
   § 4111. GRANTS OR LOANS OF PUBLIC OR PRIVATE FUNDS OR IN-KIND  MATERI-
 AL.  1.  THE  AUTHORITY  MAY ACCEPT, RECEIVE, RECEIPT FOR, DISBURSE, AND
 EXPEND FEDERAL AND STATE MONEYS AND OTHER  MONEYS,  PUBLIC  OR  PRIVATE,
 MADE  AVAILABLE BY GRANT OR LOAN OR BOTH OR OTHERWISE, TO ACCOMPLISH, IN
 WHOLE OR IN PART ANY OF THE PURPOSES OF THIS ARTICLE. ALL FEDERAL MONEYS
 ACCEPTED UNDER THIS SECTION  SHALL  BE  ACCEPTED  AND  EXPENDED  BY  THE
 AUTHORITY UPON SUCH TERMS AND CONDITIONS AS ARE PRESCRIBED BY THE UNITED
 STATES  AND  AS  ARE  CONSISTENT  WITH  STATE  LAW; AND ALL STATE MONEYS
 ACCEPTED UNDER THIS SECTION  SHALL  BE  ACCEPTED  AND  EXPENDED  BY  THE
 AUTHORITY  UPON  SUCH TERMS AND CONDITIONS AS ARE PRESCRIBED BY NEW YORK
 STATE LAW.
   2. THE AUTHORITY MAY ACCEPT,  RECEIVE,  RECEIPT  FOR,  GRANT  OR  LOAN
 COMPUTERS  AND  OTHER  TELECOMMUNICATIONS EQUIPMENT OR BROADBAND INFRAS-
 TRUCTURE EQUIPMENT MADE AVAILABLE TO IT BY IN-KIND  DONATION,  GRANT  OR
 LOAN,  TO  ACCOMPLISH,  IN WHOLE OR IN PART, ANY OF THE PURPOSES OF THIS
 ARTICLE. ALL SUCH IN-KIND MATERIAL  SHALL  BE  ACCEPTED  AND  LOANED  OR
 GRANTED  BY  THE  AUTHORITY  UPON  SUCH  TERMS  AND  CONDITIONS  AS  ARE
 PRESCRIBED IN APPLICABLE SECTIONS OF THE LAW OF THE UNITED STATES AND AS
 ARE CONSISTENT WITH STATE LAW.
   § 4112. EXEMPTION FROM TAXES AND  ASSESSMENTS.  THE  EXERCISE  OF  THE
 POWERS  GRANTED BY THIS ARTICLE SHALL BE IN ALL RESPECTS FOR THE BENEFIT
 OF THE PEOPLE OF THIS STATE, FOR THE  INCREASE  OF  THEIR  COMMERCE  AND
 PROSPERITY,  FOR  THE IMPROVEMENT OF THEIR HEALTH AND LIVING CONDITIONS,
 AND AS THE OPERATION AND MAINTENANCE OF PROJECTS BY  THE  AUTHORITY  AND
 THE  UNDERTAKING  OF  ACTIVITIES  IN  FURTHERANCE  OF THE PURPOSE OF THE
 AUTHORITY CONSTITUTE THE PERFORMANCE  OF  ESSENTIAL  GOVERNMENTAL  FUNC-
 TIONS,  THE  AUTHORITY SHALL NOT BE REQUIRED TO PAY ANY TAXES OR ASSESS-
 MENTS UPON ANY PROJECT OR ANY PROPERTY ACQUIRED OR USED BY THE AUTHORITY
 UNDER THE PROVISIONS OF THIS  ARTICLE  OR  UPON  THE  INCOME  THEREFROM,
 INCLUDING  SALES AND USE TAXES ON TANGIBLE PERSONAL PROPERTY USED IN THE

 S. 2880                            14
 
 OPERATIONS OF THE AUTHORITY, AND ANY BONDS ISSUED UNDER  THE  PROVISIONS
 OF  THIS ARTICLE, THEIR TRANSFER AND THE INCOME THEREFROM (INCLUDING ANY
 PROFIT MADE ON THE SALE THEREOF) SHALL AT ALL TIMES BE FREE  FROM  STATE
 AND  LOCAL  TAXATION. THE EXEMPTION GRANTED IN THIS SECTION SHALL NOT BE
 CONSTRUED TO EXTEND TO PERSONS CONDUCTING ON THE PREMISES OF A  FACILITY
 BUSINESSES FOR WHICH LOCAL OR STATE TAXES WOULD OTHERWISE BE REQUIRED.
   §  4113.  BROADBAND  AND ADVANCED COMMUNICATIONS DEVELOPMENT FUND.  1.
 THERE IS CREATED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMIS-
 SIONER OF THE DEPARTMENT OF TAXATION AND FINANCE A SPECIAL NONREVERTING,
 PERMANENT ACCOUNT IN THE SPECIAL REVENUE FUND, TO BE CALLED THE ADVANCED
 COMMUNICATIONS ASSISTANCE FUND, TO BE  ADMINISTERED  BY  THE  AUTHORITY.
 MONEYS  IN  THE  FUND  SHALL  BE  USED SOLELY FOR THE PURPOSE OF HELPING
 UNSERVED, UNDERSERVED AND DISTRESSED MUNICIPAL CORPORATIONS IN NEW  YORK
 STATE  TAKE  FULL  ADVANTAGE  OF  BROADBAND  AND ADVANCED COMMUNICATIONS
 SERVICES.  LOANS OR GRANTS FROM THE FUND SHALL  BE  USED  TO  EFFECTUATE
 PHYSICAL  AND  SOCIAL  ACCESS  TO BROADBAND IN UNSERVED, UNDERSERVED AND
 DISTRESSED LOCALITIES FOR:
   (A) THE INTERNAL COMMUNICATION NEEDS OF  SUCH  LOCALITIES,  WHICH  MAY
 INCLUDE  BUT  ARE NOT LIMITED TO FIBER-OPTIC AND WIRELESS COMMUNICATIONS
 NETWORKS;
   (B) HELP IN FINANCING THE COSTS OF  PLANNING,  DESIGNING,  PURCHASING,
 LEASING,  INSTALLING, OR MAINTAINING DARK FIBER TO THE EXTENT PERMITTED,
 SUBJECT HOWEVER TO ALL DUTIES AND RESTRICTIONS THAT  EXIST  WITHIN  THIS
 SECTION; OR
   (C)  TO  ADVANCE THE PHYSICAL AND SOCIAL AVAILABILITY OF BROADBAND AND
 OTHER ADVANCED COMMUNICATIONS SERVICES TO ALL CONSUMERS, INCLUDING THOSE
 IN LOW INCOME, RURAL, INSULAR, AND HIGH COST AREAS  AT  RATES  THAT  ARE
 REASONABLY  COMPARABLE  TO  THOSE  CHARGED  IN  HIGH-DENSITY URBAN AREAS
 AND/OR IN THE AREA OF THE STATE WHERE SUCH SERVICES  ARE  MOST  COMPETI-
 TIVELY  PRICED;  AND  TO INCREASE PHYSICAL AND SOCIAL ACCESS TO, AND THE
 UBIQUITY OF,  ADVANCED  TELECOMMUNICATIONS  SERVICES  AVAILABLE  TO  THE
 PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER.
   2.  ALL MONEYS OF THE AUTHORITY FROM WHATEVER SOURCE DERIVED INCLUDING
 SUCH FUNDS AS MAY BE APPROPRIATED AND ANY GIFTS, GRANTS, DONATIONS  FROM
 PUBLIC  OR  PRIVATE SOURCES, OR MONEYS RAISED FROM BONDS OR NOTES, SHALL
 BE DEPOSITED IN THE FUND.
   3. INTEREST EARNED ON MONEYS IN THE FUND SHALL REMAIN IN THE FUND  AND
 BE  CREDITED  TO IT. ANY MONEYS REMAINING IN THE FUND AT THE END OF EACH
 FISCAL YEAR, INCLUDING INTEREST THEREON, SHALL NOT REVERT TO THE GENERAL
 FUND BUT SHALL REMAIN IN THE FUND  AND  EXPENDITURES  AND  DISBURSEMENTS
 FROM  THE  FUND,  WHICH MAY CONSIST OF GRANTS OR LOANS, SHALL BE MADE BY
 THE COMPTROLLER UPON WRITTEN REQUEST BEARING THE SIGNATURE OF THE  CHAIR
 OR THE VICE-CHAIR OF THE AUTHORITY, OR, IF SO AUTHORIZED BY THE AUTHORI-
 TY, BEARING HIS OR HER FACSIMILE SIGNATURE, AND THE OFFICIAL SEAL OF THE
 AUTHORITY.
   4.  THE  RECEIPT OF MONIES FROM THE FUND SHALL BE CONDITIONED UPON THE
 ACCEPTANCE BY PUBLIC AND PRIVATE  TELECOMMUNICATIONS  SERVICES  PROVIDER
 RECIPIENTS  OF THE IMPORTANT STATE POLICY THAT THE REASONABLY UNFETTERED
 ACCESS OF THE CITIZENRY TO THE MAXIMALLY  DIVERSE  INTERNET  IS  IN  THE
 PUBLIC  INTEREST, WITH THE EXPRESS UNDERSTANDING THAT TELECOMMUNICATIONS
 PROVIDERS MAY CHOOSE TO BLOCK, LIMIT OR OTHERWISE RESTRICT  THE  PASSAGE
 OF  ELECTRONIC  MAIL  MESSAGE  OR  OTHER CONTENT THAT TRANSMIT, PORTRAY,
 DESCRIBE, REPRESENT OR OTHERWISE CONTAIN MATTERS SUCH AS CHILD PORNOGRA-
 PHY OR SIMILAR OBSCENITY, OTHER UNLAWFUL MATERIAL,  THREATS  OF  SERIOUS
 BODILY HARM, THREATS TO THE PUBLIC SAFETY AND HOMELAND SECURITY, THREATS
 OF  DEATH  TO  INDIVIDUALS  OR GROUPS OF INDIVIDUALS, VIRUSES OR SIMILAR

 S. 2880                            15
 
 COMPUTER GENERATED PROGRAMS OR CODE THAT  HAVE  THE  POTENTIAL  TO  HARM
 COMPUTER HARDWARE AND/OR SOFTWARE AND/OR NETWORKS, EXCESSIVE UNSOLICITED
 COMMERCIAL  EMAIL  THAT  DEGRADES OR INTERFERES WITH OR HARMS THE NORMAL
 OPERATION  OF  BROADBAND  NETWORKS,  AND OTHER SIMILAR TYPES OR FORMS OF
 MATERIAL OR SOFTWARE  (THE  FOREGOING  EXAMPLES  ARE  ILLUSTRATIVE,  NOT
 EXHAUSTIVE  OF SUCH THREATS TO USERS AND/OR THE NETWORK). EACH RECIPIENT
 OF MONIES FROM THE FUND SHALL PROVIDE TO  THE  AUTHORITY  ON  AN  ANNUAL
 BASIS A WRITTEN REPORT DESCRIBING EVERY INSTANCE IN WHICH SUCH RECIPIENT
 BLOCKS, LIMITS OR OTHERWISE RESTRICTS SUBSCRIBERS OR OTHER PURCHASERS OF
 BROADBAND  SERVICES  FROM  THE  RECIPIENT  FROM ACCESSING ANY PARTICULAR
 INTERNET SITE OR CATEGORY OR TYPE OF INTERNET SITE OR ANY SPECIFIC ELEC-
 TRONIC MAIL MESSAGE OR CATEGORY OR TYPE OF ELECTRONIC MAIL  ("NEUTRALITY
 REPORT").  SUCH  NEUTRALITY REPORT SHALL CONTAIN DETAIL OF A SPECIFICITY
 LEVEL TO BE DETERMINED BY THE AUTHORITY, AND  SHALL  CONTAIN  SUFFICIENT
 DETAIL  TO  ALLOW THE AUTHORITY TO ASCERTAIN THE NATURE OF ANY BLOCKING,
 LIMITATION OR OTHER RESTRICTIONS,  AND  THE  REASON  FOR  THE  RECIPIENT
 TAKING  SUCH ACTION, BUT SHALL BE PROVIDED IN A MANNER REASONABLY CALCU-
 LATED TO PROTECT SUBSCRIBER AND  PURCHASER  PRIVACY  OR  THE  LEGITIMATE
 NEEDS  OF LAW ENFORCEMENT. NO RECIPIENT OF FUNDS SHALL BE RESPONSIBLE OR
 LIABLE FOR ANY EFFORTS BY OR POLICIES, PRACTICES  OR  PROCEDURES  OF  AN
 UNAFFILIATED  TELECOMMUNICATIONS  SERVICES PROVIDER OR INTERNET SERVICES
 PROVIDER OR INTERNET PROTOCOL TRAFFIC ROUTING ENTITY TO BLOCK  SUBSCRIB-
 ERS FROM ACCESSING ANY INTERNET SITE OR ANY CATEGORY OR TYPE OF INTERNET
 SITE  OR ANY SPECIFIC ELECTRONIC MAIL MESSAGE OR ANY CATEGORY OR TYPE OF
 ELECTRONIC MAIL.
   5. ANY PLEDGE MADE BY THE AUTHORITY IS VALID AND BINDING FROM THE DATE
 THAT THE PLEDGE IS MADE. THE MONEY OR PROPERTY PLEDGED AND  RECEIVED  BY
 THE  AUTHORITY  SHALL  IMMEDIATELY  BE SUBJECT TO THE LIEN OF THE PLEDGE
 WITHOUT ANY PHYSICAL DELIVERY OR FURTHER ACT AND THE LIEN OF THE  PLEDGE
 IS  VALID  AND  BINDING  AGAINST  ALL  PARTIES  HAVING  CLAIMS  IN TORT,
 CONTRACT, OR OTHERWISE AGAINST THE AUTHORITY,  IRRESPECTIVE  OF  WHETHER
 THE PARTIES HAVE NOTICE OF THE LIEN. THE RESOLUTION OR ANY OTHER INSTRU-
 MENT BY WHICH A PLEDGE IS CREATED NEED NOT BE RECORDED.
   § 4114. APPROPRIATIONS BY ANY GOVERNMENT OR MUNICIPAL CORPORATION. ANY
 GOVERNMENT  OR  MUNICIPAL  CORPORATION  MAY  MAKE APPROPRIATIONS FOR THE
 ACQUISITION, CONSTRUCTION, IMPROVEMENT, MAINTENANCE OR OPERATION OF  ANY
 PROJECT  ACQUIRED,  CONSTRUCTED, IMPROVED, MAINTAINED OR OPERATED BY THE
 AUTHORITY.
   § 4115. CONVEYANCE, LEASE OR TRANSFER OF PROPERTY BY A CITY OR  COUNTY
 TO  THE  AUTHORITY. ANY CITY OR COUNTY WITHIN NEW YORK STATE IN ORDER TO
 PROVIDE FOR THE CONSTRUCTION,  RECONSTRUCTION,  IMPROVEMENT,  REPAIR  OR
 MANAGEMENT OF ANY PROJECT, OR IN ORDER TO ACCOMPLISH ANY OF THE PURPOSES
 OF  THIS  ARTICLE  MAY,  WITH  OR WITHOUT CONSIDERATION OR FOR A NOMINAL
 CONSIDERATION, LEASE, SELL, CONVEY OR OTHERWISE TRANSFER TO THE AUTHORI-
 TY ANY REAL, PERSONAL OR MIXED PROPERTY  LOCATED  WITHIN  SUCH  CITY  OR
 COUNTY.
   §  4116. ACTIONS AGAINST THE AUTHORITY. 1. IN EVERY ACTION AGAINST THE
 AUTHORITY FOR DAMAGES, FOR INJURIES TO REAL OR PERSONAL PROPERTY, OR FOR
 THE DESTRUCTION THEREOF, OR FOR PERSONAL INJURIES, THE  COMPLAINT  SHALL
 CONTAIN  AN  ALLEGATION THAT AT LEAST THIRTY DAYS HAVE ELAPSED SINCE THE
 DEMAND, CLAIM OR CLAIMS UPON WHICH SUCH ACTION IS FOUNDED WERE PRESENTED
 TO A MEMBER OF THE AUTHORITY, OR TO ITS SECRETARY, OR TO ITS CHIEF EXEC-
 UTIVE OFFICER AND THAT THE AUTHORITY HAS NEGLECTED OR REFUSED TO MAKE AN
 ADJUSTMENT OR PAYMENT THEREOF FOR THIRTY DAYS AFTER SUCH PRESENTMENT.
   2. AN ACTION AGAINST THE AUTHORITY FOR DAMAGES FOR INJURIES TO REAL OR
 PERSONAL PROPERTY, OR FOR THE DESTRUCTION THEREOF, OR FOR PERSONAL INJU-

 S. 2880                            16

 RIES, ALLEGED TO HAVE BEEN SUSTAINED SHALL NOT BE  COMMENCED  MORE  THAN
 ONE  YEAR  AND NINETY DAYS AFTER THE CAUSE OF ACTION THEREFOR SHALL HAVE
 ACCRUED, NOR UNLESS A NOTICE OF INTENTION TO COMMENCE SUCH ACTION AND OF
 THE  TIME  WHEN  AND PLACE WHERE THE DAMAGES WERE INCURRED OR SUSTAINED,
 TOGETHER WITH A  VERIFIED  STATEMENT  SHOWING  IN  DETAIL  THE  PROPERTY
 ALLEGED  TO HAVE BEEN DAMAGED OR DESTROYED AND THE VALUE THEREOF, OR THE
 PERSONAL INJURIES ALLEGED TO HAVE BEEN SUSTAINED AND BY WHOM, SHALL HAVE
 BEEN FILED IN THE PRINCIPAL OFFICE OF THE AUTHORITY WITHIN  NINETY  DAYS
 AFTER SUCH CAUSE OF ACTION SHALL HAVE ACCRUED.
   3.  AN  ACTION  AGAINST  THE  AUTHORITY  FOR  WRONGFUL  DEATH SHALL BE
 COMMENCED IN ACCORDANCE WITH THE NOTICE OF  CLAIM  AND  TIME  LIMITATION
 PROVISIONS OF TITLE ELEVEN OF ARTICLE NINE OF THIS CHAPTER.
   §  4117.  AUDIT POWER AND CONTRACT APPROVAL BY THE COMPTROLLER. 1. THE
 COMPTROLLER, OR HIS OR HER  LEGALLY  AUTHORIZED  REPRESENTATIVES,  SHALL
 HAVE THE AUTHORITY TO EXAMINE THE ACCOUNTS AND FINANCES OF THE AUTHORITY
 AND  TO CONDUCT MANAGEMENT AUDITS OF THE STAFF AND BOARD OF THE AUTHORI-
 TY.
   2. THE PROCUREMENT, PUBLIC WORK, CONSTRUCTION, AND  REVENUE  CONTRACTS
 OF  THE  AUTHORITY  SHALL BE SUBJECT TO PRIOR REVIEW AND APPROVAL BY THE
 COMPTROLLER, IF THE COMPTROLLER, IN HIS OR  HER  DISCRETION,  DETERMINES
 THAT  SUCH  REVIEW  AND  APPROVAL  SHALL BE REQUIRED. IF THE COMPTROLLER
 DETERMINES THAT ANY CONTRACT OR CATEGORY OF CONTRACTS OF A STATE AUTHOR-
 ITY  REQUIRES  DIRECT  SUPERVISION  IN  THE  FORM  OF  PRE-APPROVAL   OF
 CONTRACTS,  AND THE COMPTROLLER SO NOTIFIES SUCH STATE AUTHORITY OF SUCH
 DETERMINATION, THEN SUBJECT TO SUBDIVISION THREE  OF  THIS  SECTION,  NO
 SUCH  CONTRACT  OR AGREEMENT BY SUCH STATE AUTHORITY SELECTED FOR REVIEW
 BY THE COMPTROLLER SHALL BE A VALID  ENFORCEABLE  CONTRACT  UNLESS  SUCH
 CONTRACT  SHALL  FIRST BE APPROVED BY THE COMPTROLLER. IN THE EVENT THAT
 THE COMPTROLLER NOTIFIES THE AUTHORITY THAT APPROVAL SHALL  BE  REQUIRED
 AS  PROVIDED  IN  THIS  SECTION,  THEN  THE  AUTHORITY  SHALL  INCLUDE A
 PROVISION IN ALL SUCH CONTRACTS SELECTED FOR REVIEW  AS  STATED  IN  ANY
 SUCH  NOTICE INFORMING THE OTHER PARTIES TO SUCH CONTRACTS THAT THE SAME
 ARE NOT VALID AND ENFORCEABLE WITHOUT THE COMPTROLLER'S APPROVAL.
   3. ANY CONTRACT SELECTED BY THE COMPTROLLER FOR  REVIEW  AND  APPROVAL
 PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL BE A VALID ENFORCEABLE
 CONTRACT  ONLY  IF THE COMPTROLLER (A) APPROVES THE CONTRACT, OR (B) HAS
 NOT DISAPPROVED THE CONTRACT WITHIN FORTY-FIVE DAYS OF THE SUBMISSION OF
 SUCH CONTRACT TO HIS OR HER OFFICE, UNLESS  THE  STATE  AUTHORITY  SHALL
 AGREE  WITH  THE  COMPTROLLER ON AN EXTENSION FOR A REASONABLE PERIOD OF
 TIME.
   § 4118. ANNUAL REPORT. THE AUTHORITY SHALL SUBMIT AN ANNUAL REPORT  NO
 LATER  THAN MARCH FIRST OF EACH YEAR, INCLUDING THE RECOMMENDATIONS MADE
 BY THE  BROADBAND  DEVELOPMENT  AND  DEPLOYMENT  COUNCIL  UNDER  SECTION
 FORTY-ONE  HUNDRED  FIVE OF THIS ARTICLE, RELATING TO ITS ACTIVITIES FOR
 THE PRECEDING CALENDAR YEAR TO THE GOVERNOR, THE SPEAKER OF  THE  ASSEM-
 BLY,  THE  TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE
 ASSEMBLY, THE MINORITY LEADER OF THE SENATE, THE CHAIR OF  THE  ASSEMBLY
 STANDING COMMITTEE ON CORPORATIONS, AUTHORITIES AND COMMISSIONS, AND THE
 CHAIR OF THE SENATE STANDING COMMITTEE ON ENERGY AND TELECOMMUNICATIONS.
   §  4119.  EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS
 OF THIS ARTICLE ARE INCONSISTENT WITH THE PROVISIONS OF ANY  OTHER  ACT,
 GENERAL OR SPECIAL, THE PROVISIONS OF THIS TITLE SHALL BE CONTROLLING.
   §  4120. SEVERABILITY. IF ANY PROVISION OF ANY SECTION OF THIS ARTICLE
 OR THE APPLICATION THEREOF  TO  ANY  PERSON  OR  CIRCUMSTANCE  SHALL  BE
 ADJUDGED  INVALID  BY  A  COURT OF COMPETENT JURISDICTION, SUCH ORDER OR
 JUDGMENT SHALL BE CONFINED IN ITS OPERATION TO THE CONTROVERSY IN  WHICH

 S. 2880                            17
 
 IT WAS RENDERED, AND SHALL NOT AFFECT OR INVALIDATE THE REMAINDER OF ANY
 PROVISION  OF ANY SECTION OF THIS ARTICLE OR THE APPLICATION OF ANY PART
 THEREOF TO ANY  OTHER  PERSON  OR  CIRCUMSTANCE  AND  TO  THIS  END  THE
 PROVISIONS  OF  EACH  SECTION  OF THIS ARTICLE ARE HEREBY DECLARED TO BE
 SEVERABLE.
   § 4. The public service law is amended by adding a new section 92-h to
 read as follows:
   § 92-H. UNIVERSAL, AFFORDABLE AND SECURE  TELECOMMUNICATIONS  SERVICES
 FUND.   1. THE COMMISSION SHALL ESTABLISH A MECHANISM FOR THE SUPPORT OF
 UNIVERSAL SERVICE, ALSO REFERRED TO IN THIS SECTION AS  THE  "HIGH  COST
 SUPPORT MECHANISM", WHICH SHALL OPERATE IN ACCORDANCE WITH RULES ADOPTED
 BY  THE COMMISSION. THE PURPOSE OF THE HIGH COST SUPPORT MECHANISM IS TO
 PROVIDE FINANCIAL ASSISTANCE TO TELECOMMUNICATIONS SERVICES PROVIDERS TO
 HELP MAKE BASIC LOCAL EXCHANGE AND BROADBAND SERVICES UNIVERSALLY AVAIL-
 ABLE, AT JUST AND REASONABLE RATES AND ALLOW SUCH PROVIDERS TO BE  FULLY
 REIMBURSED  FOR  THE DIFFERENCE BETWEEN THE REASONABLE COSTS INCURRED IN
 MAKING BASIC SERVICE AVAILABLE TO THEIR CUSTOMERS WITHIN A  RURAL,  HIGH
 COST  GEOGRAPHIC  SUPPORT  AREA  AND THE PRICE CHARGED FOR SUCH SERVICE,
 AFTER TAKING INTO ACCOUNT ANY AMOUNTS RECEIVED BY SUCH  PROVIDERS  UNDER
 PRICE  SUPPORT  MECHANISMS  ESTABLISHED BY THE FEDERAL GOVERNMENT AND BY
 THIS STATE. THE  COMMISSION  SHALL  ENSURE  THAT  NO  TELECOMMUNICATIONS
 SERVICES PROVIDER IS RECEIVING FUNDS FROM THIS OR ANY OTHER SOURCE THAT,
 TOGETHER  WITH  LOCAL  EXCHANGE  SERVICE  REVENUES,  EXCEEDS THE COST OF
 PROVIDING LOCAL EXCHANGE SERVICE TO CUSTOMERS OF SUCH PROVIDER. THE HIGH
 COST SUPPORT MECHANISM SHALL BE SUPPORTED AND DISTRIBUTED EQUITABLY  AND
 ON  A  NONDISCRIMINATORY,  COMPETITIVELY  NEUTRAL  BASIS  THROUGH A RATE
 ELEMENT ASSESSED ON ALL  TELECOMMUNICATIONS  SERVICE  PROVIDERS  IN  NEW
 YORK.  A  PROVIDER THAT OFFERS BASIC LOCAL EXCHANGE SERVICE OR BROADBAND
 SERVICE THROUGHOUT AN ENTIRE SUPPORT AREA THROUGH USE OF ITS OWN FACILI-
 TIES OR ON A RESALE BASIS MAY BE QUALIFIED AS A PROVIDER OF LAST  RESORT
 OR  MAY  BE ELIGIBLE TO RECEIVE UNIVERSAL SERVICE SUPPORT, AS DETERMINED
 BY THE COMMISSION. A PROVIDER THAT FAILS TO PAY AN  ASSESSMENT  DUE  AND
 PAYABLE UNDER THIS SECTION SHALL BE SUBJECT TO THE REVOCATION OF CERTIF-
 ICATE AFTER NOTICE AND THE OPPORTUNITY FOR A HEARING AS PROVIDED IN THIS
 CHAPTER.  IN  ALL  RELEVANT GEOGRAPHIC AREAS OF THE STATE, AS DEFINED BY
 THE COMMISSION, THE COMMISSION SHALL DESIGNATE AT LEAST ONE PROVIDER  AS
 THE  PROVIDER OF LAST RESORT AND ADOPT PROCEDURES FOR CHANGING OR TERMI-
 NATING SUCH DESIGNATIONS. A PROVIDER OF LAST RESORT DESIGNATION  CARRIES
 THE  RESPONSIBILITY  TO OFFER BASIC LOCAL EXCHANGE SERVICE AND BROADBAND
 SERVICE TO ALL CONSUMERS WHO REQUEST IT. A PERSON HOLDING A  CERTIFICATE
 OF  PUBLIC  CONVENIENCE  AND NECESSITY TO PROVIDE BASIC SERVICE SHALL BE
 SUBJECT TO THE EVOLVING DEFINITION OF BASIC  SERVICE  DEVELOPED  BY  THE
 COMMISSION  UNDER  THIS  CHAPTER AND THE SYSTEM OF FINANCIAL SUPPORT FOR
 UNIVERSAL SERVICE ESTABLISHED BY THE COMMISSION UNDER THIS  SECTION.  IF
 AND  WHEN  ADDITIONAL  ELEMENTS  ARE INCLUDED IN THE DEFINITION OF BASIC
 SERVICE AS A RESULT OF REVIEW BY THE COMMISSION, PRICES MAY INCREASE  AS
 IS  DETERMINED BY THE COMMISSION TO BE REASONABLY NECESSARY TO COVER THE
 COST AND ACCOUNT FOR THE INCLUSION OF SUCH ADDITIONAL ELEMENTS.
   2. ON OR BEFORE DECEMBER FIRST OF  EACH  YEAR,  THE  COMMISSION  SHALL
 SUBMIT  A  WRITTEN  REPORT  TO  THE GOVERNOR, TEMPORARY PRESIDENT OF THE
 SENATE, SPEAKER OF THE ASSEMBLY, MINORITY  LEADERS  OF  THE  SENATE  AND
 ASSEMBLY,  CHAIRPERSON  AND RANKING MINORITY MEMBER OF THE SENATE ENERGY
 AND TELECOMMUNICATIONS COMMITTEE, AND THE CHAIRPERSON AND RANKING MINOR-
 ITY MEMBER OF THE ASSEMBLY  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS
 COMMITTEE,  ACCOUNTING  FOR THE OPERATION OF THE HIGH COST SUPPORT MECH-

 S. 2880                            18
 
 ANISM DURING THE PRECEDING CALENDAR YEAR AND  CONTAINING  THE  FOLLOWING
 INFORMATION, AT A MINIMUM:
   (A)  THE  TOTAL  AMOUNT OF MONEY THAT THE COMMISSION DETERMINED SHOULD
 CONSTITUTE THE HIGH COST  SUPPORT  MECHANISM  FROM  WHICH  DISTRIBUTIONS
 WOULD BE MADE;
   (B) THE TOTAL AMOUNT OF MONEY ORDERED TO BE CONTRIBUTED THROUGH A RATE
 ELEMENT  ASSESSMENT COLLECTED BY EACH TELECOMMUNICATIONS SERVICE PROVID-
 ER;
   (C) THE BASIS ON WHICH THE  CONTRIBUTION  OF  EACH  TELECOMMUNICATIONS
 SERVICE PROVIDER WAS CALCULATED;
   (D)  THE  BENCHMARKS  USED  AND THE BASIS ON WHICH THE BENCHMARKS WERE
 DETERMINED;
   (E) THE TOTAL AMOUNT OF MONEY THAT THE COMMISSION DETERMINED SHOULD BE
 DISTRIBUTED FROM THE HIGH COST SUPPORT MECHANISM;
   (F) THE TOTAL AMOUNT OF MONEY DISTRIBUTED TO  EACH  TELECOMMUNICATIONS
 SERVICE PROVIDER FROM THE HIGH COST SUPPORT MECHANISM;
   (G)  THE BASIS ON WHICH THE DISTRIBUTION TO TELECOMMUNICATIONS SERVICE
 PROVIDERS WAS CALCULATED;
   (H)  AS  TO  EACH  TELECOMMUNICATIONS  SERVICE  PROVIDER  RECEIVING  A
 DISTRIBUTION, THE AMOUNT RECEIVED BY GEOGRAPHIC SUPPORT AREA AND TYPE OF
 CUSTOMER,  THE  WAY IN WHICH THE BENEFIT OF THE DISTRIBUTION WAS APPLIED
 OR ACCOUNTED FOR;
   (I)  THE  PROPOSED  BENCHMARKS,  THE  PROPOSED  CONTRIBUTIONS  TO   BE
 COLLECTED  THROUGH  A RATE ELEMENT ASSESSMENT BY EACH TELECOMMUNICATIONS
 SERVICE PROVIDER, AND THE PROPOSED TOTAL AMOUNT OF THE HIGH COST SUPPORT
 MECHANISM FROM WHICH DISTRIBUTIONS ARE TO  BE  MADE  FOR  THE  FOLLOWING
 CALENDAR YEAR; AND
   (J)  THE  TOTAL  AMOUNT OF DISTRIBUTIONS MADE FROM THE HIGH COST FUND,
 DIRECTLY OR INDIRECTLY, AND HOW THEY ARE BALANCED BY RATE REDUCTIONS  BY
 ALL  PROVIDERS  FOR  THE SAME PERIOD AND A FULL ACCOUNTING OF AND JUSTI-
 FICATION FOR ANY DIFFERENCE. IF THE REPORT SUBMITTED  PURSUANT  TO  THIS
 SUBDIVISION  CONTAINS  A  PROPOSAL FOR AN INCREASE IN ANY OF THE AMOUNTS
 LISTED IN PARAGRAPH (B) OF THIS  SUBDIVISION,  SUCH  INCREASE  SHALL  BE
 SUSPENDED UNTIL MARCH THIRTY-FIRST OF THE FOLLOWING YEAR.
   SUCH  REPORT  MUST  ALSO DETERMINE WHAT AMOUNT OF UNEXPENDED FUNDS, IF
 ANY, AT THE END OF EACH FISCAL YEAR, COULD BE REFUNDED TO THE CONTRIBUT-
 ING TELECOMMUNICATIONS SERVICES PROVIDERS ON A  BASIS  THAT  IS  PROPOR-
 TIONAL  TO  THE  AMOUNTS CONTRIBUTED BY SUCH TELECOMMUNICATIONS SERVICES
 PROVIDERS.
   3. THERE IS HEREBY CREATED, IN THE STATE TREASURY, THE NEW  YORK  HIGH
 COST  ADMINISTRATION  FUND,  REFERRED  TO IN THIS SECTION AS THE "FUND",
 WHICH SHALL BE USED TO REIMBURSE THE COMMISSION AND, IF APPLICABLE,  ITS
 CONTRACTORS,  FOR  REASONABLE EXPENSES INCURRED IN THE ADMINISTRATION OF
 THE HIGH COST SUPPORT MECHANISM AS DETERMINED BY RULES  OF  THE  COMMIS-
 SION, AND SHALL BE AUDITED IN A MANNER AND FREQUENCY TO BE DETERMINED BY
 THE  COMPTROLLER.  THE  MONEYS  IN  THE FUND THAT ARE TO BE USED FOR THE
 DIRECT AND INDIRECT ADMINISTRATIVE COSTS INCURRED BY THE COMMISSION  AND
 ITS  CONTRACTORS  SHALL  BE APPROPRIATED ANNUALLY BY THE LEGISLATURE. AT
 THE END OF ANY FISCAL YEAR, ALL UNEXPENDED AND  UNENCUMBERED  MONEYS  IN
 THE  FUND  SHALL REMAIN THEREIN AND SHALL NOT BE CREDITED OR TRANSFERRED
 TO THE GENERAL FUND OR ANY OTHER FUND. BASED UPON THE BALANCE  REMAINING
 IN  THE FUND AND THE AMOUNT APPROPRIATED ANNUALLY BY THE LEGISLATURE FOR
 USE BY THE COMMISSION, EACH YEAR  THE  COMMISSION  SHALL  DETERMINE  THE
 NONDISCRIMINATORY,  COMPETITIVELY NEUTRAL ASSESSMENT ON ALL TELECOMMUNI-
 CATIONS SERVICE PROVIDERS IN NEW YORK THAT WILL BE  NECESSARY  TO  COVER
 THE  COST  OF  IMPLEMENTING  THE HIGH COST SUPPORT MECHANISM.   ONLY THE

 S. 2880                            19
 
 MONEYS FROM SUCH ASSESSMENT SHALL BE TRANSMITTED TO THE STATE TREASURER,
 WHO SHALL CREDIT THE SAME TO THE FUND. ALL  INTEREST  DERIVED  FROM  THE
 DEPOSIT  AND  INVESTMENT OF THIS FUND SHALL REMAIN IN THE FUND AND SHALL
 NOT REVERT TO THE GENERAL FUND.
   § 5. The public service law is amended by adding a new article 11-A to
 read as follows:
                               ARTICLE 11-A
                STATEWIDE CABLE FRANCHISING AND REGULATION
 SECTION 231. DEFINITIONS.
         232. AUTHORIZATION TO PROVIDE CABLE SERVICE.
         233. PUBLIC SERVICE COMMISSION RESPONSIBILITIES.
         234. APPLICATION FOR STATEWIDE CABLE FRANCHISE.
         235. LENGTH OF STATEWIDE FRANCHISE.
         236. TERMINATION OF A STATEWIDE FRANCHISE.
         237. ABANDONMENT OF SERVICE.
         238. MUNICIPAL POWER AND REGULATION OVER FRANCHISE HOLDERS.
         239. PAYMENT AND REMITTANCE OF FRANCHISE FEE.
         240. PUBLIC, EDUCATIONAL AND GOVERNMENT CHANNELS.
         241. CABLE OPERATOR'S COMMUNITY COMMITMENT.
         242. CONSUMER PROTECTION RULES.
         243. NEUTRAL INTERNET AND BROADBAND NETWORKS.
         244. DEPLOYMENT REQUIREMENTS FOR STATEWIDE CABLE FRANCHISE.
         245. DISCRIMINATION IN THE PROVISIONING OF SERVICE PROHIBITED.
         246. ENFORCEMENT.
   §  231.  DEFINITIONS. THE WORDS AND PHRASES USED IN THIS ARTICLE SHALL
 HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING  CLEARLY  APPEARS
 IN THE CONTEXT.
   1.  "CABLE SERVICE" SHALL MEAN THE ONE-WAY TRANSMISSION TO SUBSCRIBERS
 OF VIDEO PROGRAMMING;  OR  OTHER  PROGRAMMING  SERVICE,  AND  SUBSCRIBER
 INTERACTION,  IF ANY, WHICH IS REQUIRED FOR THE SELECTION OR USE OF SUCH
 VIDEO PROGRAMMING OR OTHER PROGRAMMING SERVICE, REGARDLESS OF THE  TECH-
 NOLOGY  UTILIZED  BY A CABLE TELEVISION COMPANY TO ENABLE SUCH SELECTION
 OR USE.
   2. "CABLE OPERATOR" SHALL MEAN ANY PERSON OR GROUP OF PERSONS (A)  WHO
 PROVIDES  CABLE  SERVICE OVER A CABLE SYSTEM AND DIRECTLY OR THROUGH ONE
 OR MORE AFFILIATES OWNS A SIGNIFICANT INTEREST IN SUCH CABLE SYSTEM,  OR
 (B)  WHO  OTHERWISE CONTROLS OR IS RESPONSIBLE FOR, THROUGH ANY ARRANGE-
 MENT, THE MANAGEMENT AND OPERATION OF SUCH A CABLE SYSTEM, AS SET  FORTH
 IN 47 U.S.C. § 522(5).
   3.  "CABLE  SYSTEM"  SHALL  MEAN  ANY FACILITY, CONSISTING OF A SET OF
 CLOSED TRANSMISSION PATHS AND ASSOCIATED  SIGNAL  GENERATION,  RECEPTION
 AND  CONTROL  EQUIPMENT  THAT IS DESIGNED TO PROVIDE CABLE SERVICE WHICH
 INCLUDES VIDEO PROGRAMMING, WITHOUT REGARD TO  THE  TECHNOLOGY  USED  TO
 DELIVER  SUCH  VIDEO PROGRAMMING, INCLUDING INTERNET PROTOCOL TECHNOLOGY
 OR ANY SUCCESSOR TECHNOLOGY AND WHICH IS PROVIDED TO MULTIPLE  SUBSCRIB-
 ERS  WITHIN  A  COMMUNITY, AS SET FORTH IN 47 U.S.C.  § 522(7), BUT SUCH
 TERM DOES NOT INCLUDE:
   (A) A FACILITY THAT SERVES ONLY TO RETRANSMIT THE  TELEVISION  SIGNALS
 OF ONE OR MORE TELEVISION BROADCAST STATIONS;
   (B) A FACILITY THAT SERVES SUBSCRIBERS WITHOUT USING ANY PUBLIC RIGHT-
 OF-WAY;
   (C)  A  FACILITY  OF A COMMON CARRIER WHICH IS SUBJECT, IN WHOLE OR IN
 PART, TO THE PROVISIONS OF TITLE II OF THE COMMUNICATIONS ACT  OF  1934,
 47 U.S.C. § 201 ET SEQ., EXCEPT THAT SUCH FACILITY SHALL BE CONSIDERED A
 CABLE  SYSTEM  (OTHER  THAN  FOR  PURPOSES OF 47 U.S.C. § 541(C)) TO THE
 EXTENT SUCH FACILITY IS USED IN THE TRANSMISSION  OF  VIDEO  PROGRAMMING

 S. 2880                            20
 
 DIRECTLY  TO  SUBSCRIBERS,  UNLESS  THE  EXTENT OF SUCH USE IS SOLELY TO
 PROVIDE INTERACTIVE ON-DEMAND SERVICES;
   (D) AN OPEN VIDEO SYSTEM THAT COMPLIES WITH 47 U.S.C. § 573; OR
   (E)  ANY  FACILITIES OF ANY ELECTRIC UTILITY USED SOLELY FOR OPERATING
 ITS ELECTRIC UTILITY SYSTEM.
   4. "CATV COMPANY" SHALL MEAN ANY PERSON OR GROUP OF  PERSONS  (A)  WHO
 PROVIDES  CABLE  SERVICE OVER A CABLE SYSTEM AND DIRECTLY OR THROUGH ONE
 OR MORE AFFILIATES OWNS A SIGNIFICANT INTEREST IN SUCH CABLE SYSTEM,  OR
 (B)  WHO  OTHERWISE CONTROLS OR IS RESPONSIBLE FOR, THROUGH ANY ARRANGE-
 MENT, THE MANAGEMENT AND OPERATION OF SUCH A CABLE SYSTEM.
   5. "CATV SYSTEM" SHALL MEAN ANY FACILITY WHICH RECEIVES AND  AMPLIFIES
 THE  SIGNALS BROADCAST BY ONE OR MORE TELEVISION STATIONS AND REDISTRIB-
 UTES SUCH SIGNALS BY WIRE, CABLE OR OTHER MEANS,  OR  WHICH  DISTRIBUTES
 SIGNALS  IT ORIGINATES OR WHICH ARE ORIGINATED BY ANOTHER FOR VIEWING BY
 SUBSCRIBERS, WHETHER THE WIRE, CABLE OR OTHER FACILITIES  ARE  OWNED  OR
 LEASED. A "CATV SYSTEM" SHALL NOT INCLUDE:
   (A) THE POLES OR OTHER FACILITIES OF ANY TELEPHONE CORPORATION USED TO
 PROVIDE CHANNEL SERVICE AS A COMMON CARRIER,
   (B) A SYSTEM SERVING NOT MORE THAN TWO HUNDRED FIFTY SUBSCRIBERS, OR
   (C) A MASTER ANTENNA SYSTEM SERVICING SUBSCRIBERS SITUATED ON PROPERTY
 UNDER COMMON OWNERSHIP.
   6.  "COMMISSION"  SHALL  MEAN  THE  PUBLIC  SERVICE  COMMISSION OR ANY
 SUCCESSOR AGENCY.
   7. "FRANCHISE" SHALL MEAN AN INITIAL AUTHORIZATION, OR RENEWAL  OF  AN
 AUTHORIZATION,  ISSUED BY A FRANCHISING AUTHORITY, REGARDLESS OF WHETHER
 THE AUTHORIZATION IS DESIGNATED AS A FRANCHISE, PERMIT, LICENSE,  RESOL-
 UTION,  CONTRACT,  CERTIFICATE, AGREEMENT, OR OTHERWISE, THAT AUTHORIZES
 THE CONSTRUCTION AND OPERATION OF A CABLE SYSTEM IN THE  PUBLIC  RIGHTS-
 OF-WAY.
   8. "FRANCHISE HOLDER" OR "HOLDER" SHALL MEAN A PERSON WHO HAS RECEIVED
 A STATE-WIDE FRANCHISE, BUT HAS NOT TRANSFERRED OR TERMINATED SUCH FRAN-
 CHISE AUTHORIZATION, IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
   9.  "FRANCHISING  AUTHORITY"  SHALL MEAN THE PUBLIC SERVICE COMMISSION
 AND MUNICIPALITIES WHICH ARE ENTITLED TO REQUIRE FRANCHISES  AND  IMPOSE
 FEES IN ACCORDANCE WITH 47 U.S.C. §§ 522(10) AND 542, RESPECTIVELY.
   10.  "GROSS REVENUES" SHALL MEAN ANY AND ALL REVENUES, INCLUDING CASH,
 CREDITS, PROPERTY OR OTHER CONSIDERATION OF ANY KIND OR  NATURE  ARISING
 FROM, ATTRIBUTABLE TO, OR IN ANY WAY DERIVED DIRECTLY OR INDIRECTLY FROM
 THE  OPERATION  OF  THE FRANCHISEE'S CABLE SYSTEM (INCLUDING THE STUDIOS
 AND OTHER FACILITIES ASSOCIATED THEREWITH) TO  PROVIDE  CABLE  SERVICES.
 GROSS  REVENUES  INCLUDE,  BY  WAY  OF  ILLUSTRATION AND NOT LIMITATION,
 MONTHLY FEES CHARGED SUBSCRIBERS FOR ANY BASIC, OPTIONAL, PREMIUM,  PER-
 CHANNEL,  PER-PROGRAM  SERVICE,  OR CABLE PROGRAMMING SERVICE; INSTALLA-
 TION, DISCONNECTION, RECONNECTION, AND  CHANGE-IN-SERVICE  FEES;  LEASED
 CHANNEL  FEES;  LATE  FEES  AND  ADMINISTRATIVE FEES, PAYMENTS, OR OTHER
 CONSIDERATION RECEIVED FROM PROGRAMMERS FOR CARRIAGE OF  PROGRAMMING  ON
 THE SYSTEM; REVENUES FROM RENTALS OR SALES OF CONVERTERS OR OTHER EQUIP-
 MENT;  ANY  STUDIO  RENTAL,  PRODUCTION  EQUIPMENT,  AND PERSONNEL FEES;
 ADVERTISING REVENUES; BARTER; REVENUES  FROM  PROGRAM  GUIDES;  REVENUES
 FROM  THE  SALE  OR  CARRIAGE OF OTHER CABLE SERVICES; AND REVENUES FROM
 HOME SHOPPING CHANNELS AND OTHER  REVENUE  SHARING  ARRANGEMENTS.  GROSS
 REVENUES  SHALL  INCLUDE  REVENUES RECEIVED BY ANY ENTITY OTHER THAN THE
 FRANCHISEE, AN AFFILIATE, OR ANOTHER ENTITY  THAT  OPERATES  THE  SYSTEM
 WHERE  NECESSARY TO PREVENT EVASION OR AVOIDANCE OF THE OBLIGATION UNDER
 THIS STATUTE TO PAY THE FRANCHISE FEE. GROSS REVENUES SHALL NOT INCLUDE:

 S. 2880                            21
 
   (A) AMOUNTS NOT ACTUALLY RECEIVED, EVEN IF BILLED, SUCH AS  BAD  DEBT;
 REFUNDS, REBATES OR DISCOUNTS TO SUBSCRIBERS OR THIRD PARTIES; OR REVEN-
 UE  IMPUTED  FROM THE PROVISION OF CABLE SERVICES FOR FREE OR AT REDUCED
 RATES TO ANY PERSON AS REQUIRED OR ALLOWED BY  LAW,  INCLUDING,  WITHOUT
 LIMITATION,  THE  PROVISION  OF  SUCH  SERVICES  TO PUBLIC INSTITUTIONS,
 PUBLIC SCHOOLS, GOVERNMENTAL ENTITIES, OR EMPLOYEES, OTHER THAN  FORGONE
 REVENUE  CHOSEN  NOT  TO  BE  RECEIVED  IN EXCHANGE FOR TRADES, BARTERS,
 SERVICES, OR OTHER ITEMS OF VALUE; OR
   (B) ANY REVENUE FROM ANY CHARGES OR FEES DERIVED FROM SERVICES CLASSI-
 FIED AS NON-CABLE SERVICES AND INFORMATION SERVICES AND ANY OTHER REVEN-
 UES ATTRIBUTED BY THE HOLDER OF A CERTIFICATE OF APPROVAL OR  SYSTEMWIDE
 FRANCHISE  TO  NON-CABLE  SERVICES  IN  ACCORDANCE WITH FEDERAL COMMUNI-
 CATIONS COMMISSIONS RULES, REGULATIONS, STANDARDS, OR ORDERS.
   IN THE CASE OF CABLE SERVICE THAT MAY BE BUNDLED OR  INTEGRATED  FUNC-
 TIONALLY  WITH  OTHER  SERVICES, CAPABILITIES OR APPLICATIONS, THE GROSS
 REVENUES SHALL ONLY INCLUDE  THOSE  CHARGES  OR  FEES  DERIVED  FROM  OR
 ATTRIBUTABLE  TO  THE  PROVISION  OF  CABLE SERVICE, AS REFLECTED ON THE
 BOOKS AND RECORDS OF THE HOLDER  OF  A  CERTIFICATE  OF  APPROVAL  OR  A
 SYSTEMWIDE  FRANCHISE, AS THE CASE MAY BE, IN ACCORDANCE WITH THE RULES,
 REGULATIONS, STANDARDS AND ORDERS OF THE FEDERAL COMMUNICATIONS  COMMIS-
 SION.
   11.  "INCUMBENT  CABLE OPERATOR" SHALL MEAN THE CABLE OPERATOR SERVING
 THE LARGEST NUMBER OF CABLE SUBSCRIBERS IN A PARTICULAR MUNICIPAL  FRAN-
 CHISE AREA ON THE EFFECTIVE DATE OF THIS ARTICLE.
   12. "MUNICIPALITY" SHALL MEAN A CITY OR TOWN WITHIN THE STATE.
   13. "PERSON" SHALL MEAN AN INDIVIDUAL, PARTNERSHIP, ASSOCIATION, JOINT
 STOCK  COMPANY, TRUST, CORPORATION, GOVERNMENT ENTITY, LIMITED LIABILITY
 COMPANY OR ANY OTHER ENTITY.
   14. "PUBLIC RIGHT-OF-WAY" SHALL MEAN THE AREA ON,  BELOW  OR  ABOVE  A
 PUBLIC  ROADWAY,  HIGHWAY,  STREET, PUBLIC SIDEWALK, ALLEY, WATERWAY, OR
 UTILITY EASEMENT IN WHICH A MUNICIPALITY HAS AN INTEREST.
   15. "VIDEO PROGRAMMING" SHALL MEAN PROGRAMMING PROVIDED BY, OR  GENER-
 ALLY  CONSIDERED  COMPARABLE  TO,  PROGRAMMING  PROVIDED BY A TELEVISION
 BROADCAST STATION, AS SET FORTH IN 47 U.S.C. § 522(20).
   § 232. AUTHORIZATION TO PROVIDE CABLE SERVICE. 1. NOTWITHSTANDING  ANY
 OTHER LAW TO THE CONTRARY AND SUBJECT TO THE PROVISIONS OF THIS ARTICLE,
 A  PERSON SEEKING TO PROVIDE CABLE SERVICE IN THE STATE AFTER THE EFFEC-
 TIVE DATE OF THIS ARTICLE MAY FILE AN APPLICATION FOR A STATEWIDE  FRAN-
 CHISE WITH THE COMMISSION AS REQUIRED BY THIS SECTION. THIS ARTICLE DOES
 NOT  PRECLUDE  CABLE OPERATORS FROM FILING INDIVIDUAL APPLICATIONS UNDER
 ARTICLE ELEVEN OF THIS CHAPTER, PROVIDED HOWEVER THAT A PERSON FILING AN
 APPLICATION FOR A STATEWIDE  FRANCHISE  WITH  THE  COMMISSION  SHALL  BE
 REQUIRED  UPON  RECEIPT  OF  SUCH  FRANCHISE TO COMPLY WITH SECTIONS TWO
 HUNDRED FORTY-TWO AND TWO  HUNDRED  FORTY-THREE  OF  THIS  ARTICLE  WITH
 REGARD  TO  ALL  IN-STATE BROADBAND AND BROADBAND-CAPABLE FACILITIES AND
 LINES BUILT DURING THE INITIAL BUILD-OUT PERIOD PURSUANT TO THE AUTHORI-
 ZATION PROVIDED BY SUCH FRANCHISE, AND FOR THE  PERIOD  OF  THE  INITIAL
 BUILD-OUT  PERIOD  WITH  REGARD  TO SUCH PERSON'S IN-STATE BROADBAND AND
 BROADBAND-CAPABLE FACILITIES AND LINES IN EXISTENCE WHEN SUCH  FRANCHISE
 BECOMES EFFECTIVE.
   2.  A  PERSON,  INCLUDING AN INCUMBENT CABLE OPERATOR, PROVIDING CABLE
 SERVICE UNDER A FRANCHISE AGREEMENT WITH A FRANCHISING  AUTHORITY  WHICH
 EXISTED  PRIOR  TO  THE EFFECTIVE DATE OF THIS ARTICLE IS NOT SUBJECT TO
 THIS SECTION UNTIL THE FRANCHISE AGREEMENT EXPIRES AT  THE  END  OF  ITS
 ORIGINAL OR ANY MUTUALLY AGREEABLE RENEWAL TERM, OR UNLESS AND UNTIL THE

 S. 2880                            22
 
 FRANCHISING  AUTHORITY AND ENTITY PROVIDING CABLE SERVICE MUTUALLY AGREE
 TO TERMINATE THE EXISTING FRANCHISE AGREEMENT.
   3. NOTHING IN THIS SECTION SHALL RESTRICT A CABLE OPERATOR FROM APPLY-
 ING  TO  THE  COMMISSION  FOR  A  STATEWIDE FRANCHISE TO PROVISION CABLE
 SERVICES IN TERRITORIES OF THE STATE FOR  WHICH  IT  DOES  NOT  HAVE  AN
 EXISTING  FRANCHISE AGREEMENT WITH A FRANCHISING AUTHORITY. FOR PURPOSES
 OF THIS SECTION, A CABLE OPERATOR WILL BE DEEMED TO HAVE A FRANCHISE  TO
 PROVIDE  CABLE  SERVICE  IN  THE  JURISDICTION OF A SPECIFIC FRANCHISING
 AUTHORITY IF ANY AFFILIATE, PREDECESSOR OR SUCCESSOR ENTITY OF THE CABLE
 OPERATOR MAINTAINS A FRANCHISE GRANTED BY  THAT  FRANCHISING  AUTHORITY.
 THE  TERMS  "AFFILIATE, PREDECESSOR OR SUCCESSOR ENTITY" IN THIS SECTION
 SHALL INCLUDE BUT NOT BE LIMITED TO ANY ENTITY RECEIVING,  OBTAINING  OR
 OPERATING  UNDER A FRANCHISE FROM A FRANCHISING ENTITY FOR CABLE SERVICE
 THROUGH THE GRANT OF A FRANCHISE, MERGER, SALE, ASSIGNMENT,  RESTRUCTUR-
 ING, OR ANY OTHER TYPE OF TRANSACTION.
   4. THE COMMISSION SHALL HAVE THE FRANCHISING AUTHORITY TO ISSUE STATE-
 WIDE  FRANCHISES  FOR THE PROVISIONING OF CABLE SERVICE UNDER THIS ARTI-
 CLE.   NEITHER THE COMMISSION NOR ANY  MUNICIPALITY  IN  THE  STATE  MAY
 REQUIRE  THE FRANCHISE HOLDER TO OBTAIN ANY SEPARATE OR ADDITIONAL FRAN-
 CHISE OR OTHERWISE IMPOSE ANY FEE OR OTHER  REQUIREMENT,  INCLUDING  BUT
 NOT  LIMITED  TO THE REGULATION OF CABLE SERVICE RATES, ON ANY FRANCHISE
 HOLDER AS A CONDITION OF PROVIDING CABLE SERVICE, EXCEPT AS PROVIDED  IN
 THIS ARTICLE.
   5.  16 NYCRR § 895.3, AS AMENDED FROM TIME TO TIME, SHALL NOT APPLY TO
 THIS ARTICLE.
   § 233. PUBLIC SERVICE COMMISSION RESPONSIBILITIES. 1.  THE  COMMISSION
 SHALL ASSIGN EXISTING PERMANENT STAFF OF SUCH LEGAL, TECHNICAL AND OTHER
 EMPLOYEES OF THE COMMISSION AS MAY BE REQUIRED FOR THE PROPER CONDUCT OF
 ITS  CABLE  FRANCHISING  RESPONSIBILITIES UNDER THIS ARTICLE. THE POWERS
 AND DUTIES OF THE PUBLIC SERVICE COMMISSION WITH  RESPECT  TO  STATEWIDE
 FRANCHISES SHALL NOT EXCEED THOSE PRESCRIBED IN THIS ARTICLE.
   2.  THE  COMMISSION  SHALL  BE RESPONSIBLE FOR ESTABLISHING ADDITIONAL
 ADMINISTRATIVE PROCEDURES AND REGULATIONS NOT EXPLICITLY GRANTED IN THIS
 ARTICLE FOR THE ISSUANCE OF STATEWIDE FRANCHISES IN ACCORDANCE WITH  THE
 PROVISIONS  OF  THIS ARTICLE. THE COMMISSION'S ADMINISTRATIVE POWERS AND
 DUTIES SHALL BE LIMITED TO THE PROVISION FOUND IN  SECTION  TWO  HUNDRED
 THIRTY-FOUR OF THIS ARTICLE AND ADDITIONAL POWERS INCLUDING THE:
   (A)  DEVELOPMENT OF PROCEDURES TO SUBMIT, REVIEW AND DOCUMENT APPLICA-
 TIONS FILED WITH THE COMMISSION;
   (B) REVIEW OF THE INITIAL SUBMISSION AND ANY UPDATES  OF  THE  GENERAL
 DESCRIPTION  OF  THE  SERVICE  AREA  FOOTPRINT TO BE SERVED OR EXPANDED,
 INCLUDING, IF APPLICABLE, ANY AREA WITHIN A MUNICIPALITY TO BE SERVED BY
 AN APPLICANT;
   (C) DETERMINATION AND NOTICE OF INCOMPLETE APPLICATIONS;
   (D) APPROVAL OF APPLICATIONS AND AMENDED APPLICATIONS,  OR  DENIAL  OF
 SUCH APPLICATIONS, WITHIN THE PERIODS DESIGNATED UNDER THE PROVISIONS OF
 THIS ARTICLE;
   (E)  ISSUANCE TO APPLICANTS WHOSE APPLICATIONS ARE APPROVED FOR STATE-
 WIDE FRANCHISES TO PROVIDE CABLE SERVICE IN THE SERVICE  AREA  FOOTPRINT
 DESCRIBED IN THE APPLICATION; TO CONSTRUCT, UPGRADE, OPERATE OR MAINTAIN
 A  NETWORK  CAPABLE OF PROVIDING SUCH SERVICE, AND TO USE AND OCCUPY THE
 PUBLIC RIGHTS-OF-WAY IN THE DELIVERY OF THAT SERVICE;
   (F) DEVELOPMENT OF PROCEDURES TO REVIEW AND DOCUMENT THE  TRANSFER  OR
 TERMINATION OF A STATEWIDE FRANCHISE;
   (G)  ESTABLISH  GUIDELINES  IN  ADDITION TO THOSE DEVELOPED BY MUNICI-
 PALITIES UNDER SECTION TWO HUNDRED THIRTY-EIGHT OF THIS ARTICLE, TO DEAL

 S. 2880                            23
 
 WITH ANY CONSUMER COMPLAINTS OR COMPLAINTS ALLEGING  VIOLATIONS  OF  ANY
 PROVISIONS  OF  THIS ARTICLE. SUCH GUIDELINES SHALL BE EASILY ACCESSIBLE
 TO RESIDENTS OF THE STATE AND SHALL  BE  POSTED  ON  THE  INTERNET.  THE
 COMMISSION  SHALL  ALSO PROVIDE CONSUMER COMPLAINT FORMS ON THE INTERNET
 EVEN IF MUNICIPALITIES ESTABLISH THEIR  OWN  COMPLAINT  FORMS.  IN  SUCH
 CASES,  MUNICIPALITIES  AND  THE  COMMISSION  WILL WORK COOPERATIVELY TO
 ADDRESS CONSUMER COMPLAINTS.
   § 234. APPLICATION FOR STATEWIDE CABLE FRANCHISE. 1. ANY PERSON  WISH-
 ING  TO  PROVIDE  CABLE SERVICE IN THE STATE AFTER THE EFFECTIVE DATE OF
 THIS ARTICLE MAY FILE AN APPLICATION FOR A STATEWIDE FRANCHISE WITH  THE
 COMMISSION  AS  REQUIRED BY THIS SECTION. A STATEWIDE FRANCHISE APPLICA-
 TION SHALL BE ACCOMPANIED BY AN APPLICATION FEE OF TEN THOUSAND  DOLLARS
 THAT  SHALL  BE USED BY THE COMMISSION TO CARRY OUT THE PURPOSES OF THIS
 ARTICLE. NOTHING IN THIS SECTION REQUIRES THAT ANY PERSON OR ENTITY FILE
 AN APPLICATION FOR A STATEWIDE FRANCHISE.
   2. APPLICATIONS FOR A STATEWIDE FRANCHISE SHALL  CONTAIN  BUT  NOT  BE
 LIMITED TO:
   (A)  A STATEMENT THAT THE APPLICANT HAS FILED OR WILL TIMELY FILE WITH
 THE FEDERAL COMMUNICATIONS COMMISSION ALL FORMS REQUIRED BY THAT  AGENCY
 IN ADVANCE OF OFFERING CABLE SERVICE IN THIS STATE;
   (B)  A  STATEMENT  THAT  THE APPLICANT AGREES TO COMPLY WITH ALL OTHER
 APPLICABLE FEDERAL, STATE STATUTES AND  REGULATIONS  AND  ALL  GENERALLY
 APPLICABLE MUNICIPAL ORDINANCES AND REGULATIONS, INCLUDING WITHOUT LIMI-
 TATION  MUNICIPAL  ORDINANCES  AND REGULATIONS REGARDING THE TIME, PLACE
 AND MANNER OF  USING  AND  OCCUPYING  PUBLIC  RIGHTS-OF-WAY  ADOPTED  IN
 ACCORDANCE WITH STATE AND FEDERAL LAW;
   (C)  A GENERAL DESCRIPTION OF THE SERVICE AREA FOOTPRINT TO BE SERVED,
 INCLUDING, IF APPLICABLE, ANY AREA WITHIN A MUNICIPALITY TO BE SERVED BY
 THE APPLICANT. SUCH DESCRIPTION MAY BE SET FORTH ON ONE OR MORE MAPS. IF
 THE APPLICANT IS A TELEPHONE CORPORATION OR AN AFFILIATE OF A  TELEPHONE
 CORPORATION, THE SERVICE AREA WILL INCLUDE A DESCRIPTION OF THE TERRITO-
 RY  IN  WHICH  THE  COMPANY PROVIDES TELEPHONE SERVICE.  DESCRIPTIONS OF
 SERVICE AREA FOOTPRINTS SHALL BE UPDATED BY THE APPLICANT PRIOR  TO  THE
 EXPANSION  OF  CABLE  SERVICE  TO A PREVIOUSLY UNDESIGNATED SERVICE AREA
 AND, UPON SUCH EXPANSION, WRITTEN NOTICE SHALL BE GIVEN TO  THE  COMMIS-
 SION  OF  THE NEW SERVICE AREA TO BE SERVED BY THE APPLICANT. THE STATE-
 ISSUED FRANCHISE AREA AND ANY SERVICE AREA WITHIN THE FRANCHISE AREA MAY
 EXTEND BEYOND THE AREA OR AREAS WHERE  THE  APPLICANT  HAS  PRE-EXISTING
 AUTHORITY TO OCCUPY THE PUBLIC RIGHTS-OF-WAY;
   (D)  THE  LOCATION OF THE APPLICANT'S PRINCIPAL PLACE OF BUSINESS, THE
 NAMES OF THE APPLICANT'S PRINCIPAL EXECUTIVE  OFFICERS,  AND  THE  NAME,
 ADDRESS  AND  TELEPHONE  NUMBER  OF AN OFFICER, GENERAL PARTNER OR OTHER
 EMPLOYEE OF THE APPLICANT WHO WILL BE RESPONSIBLE FOR  ONGOING  COMMUNI-
 CATIONS WITH THE COMMISSION;
   (E)  THE  NAME  AND LOCATION OF THE PRINCIPAL PLACE OF BUSINESS OF THE
 APPLICANT'S PARENT COMPANY, IF ANY;
   (F) THE SIGNATURE OF AN OFFICER OR GENERAL PARTNER  OF  THE  APPLICANT
 VERIFYING THE INFORMATION SET FORTH IN THE APPLICATION;
   (G) DEMONSTRATE THE FINANCIAL, TECHNICAL, MANAGERIAL AND LEGAL CHARAC-
 TER  AND OTHER QUALIFICATIONS NEEDED TO CONSTRUCT, OPERATE, AND MAINTAIN
 THE NECESSARY PLANT AND TO PROVIDE SERVICE IN A SAFE, ADEQUATE AND PROP-
 ER MANNER;
   (H) PROVIDE A RECORD OF COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS;
 AND
   (I) PROVIDE ADDITIONAL INFORMATION AS NEEDED BY THE COMMISSION.

 S. 2880                            24
 
   3. UPON FILING AN APPLICATION WITH THE  COMMISSION  FOR  A  SYSTEMWIDE
 FRANCHISE  AGREEMENT  PURSUANT  TO  SUBDIVISION TWO OF THIS SECTION, THE
 APPLICANT SHALL INCLUDE A LIST OF THE SPECIFIC MUNICIPALITIES  TO  WHICH
 CATV  SERVICE WILL BE PROVIDED OR EXTENDED, THE ANTICIPATED CONSTRUCTION
 AND  DEPLOYMENT DATES, AND THE ANTICIPATED DATE ON WHICH SERVICE WILL BE
 OFFERED AND A CERTIFIED STATEMENT THAT SUCH  DEPLOYMENT  WILL  MEET  THE
 REQUIREMENTS  OF  SECTION  TWO  HUNDRED  FORTY-FOUR OF THIS ARTICLE. THE
 APPLICANT WILL CONCURRENTLY PROVIDE A COPY OF THE  APPLICATION  TO  EACH
 AFFECTED MUNICIPALITY.
   4. WITHIN FIFTEEN BUSINESS DAYS AFTER IT RECEIVES THE APPLICATION, THE
 COMMISSION SHALL:
   (A) DETERMINE WHETHER AN APPLICATION SUBMITTED IS INCOMPLETE; AND
   (B) IF SO, THE COMMISSION SHALL NOTIFY THE APPLICANT THAT THE APPLICA-
 TION IS INCOMPLETE AND IDENTIFY THE INFORMATION THAT THE COMMISSION MUST
 RECEIVE FROM THE APPLICANT TO MAKE THE APPLICATION COMPLETE.
   5. WITHIN SIXTY BUSINESS DAYS AFTER IT RECEIVES THE COMPLETED APPLICA-
 TION, THE COMMISSION SHALL APPROVE THE APPLICATION AND ISSUE A STATEWIDE
 FRANCHISE  TO  THE APPLICANT, OR DENY THE APPLICATION. WITHIN SIXTY DAYS
 OF THE RECEIPT THEREOF, THE COMMISSION SHALL SCHEDULE THREE PUBLIC HEAR-
 INGS TO BE HELD IN DIFFERENT GEOGRAPHICAL AREAS OF  THE  STATE  TO  GAIN
 PUBLIC  COMMENT  IN  CONSIDERATION  OF THE APPLICATION. ON OR BEFORE THE
 EXPIRATION OF THE SIXTY-DAY PERIOD, THE COMMISSION SHALL ISSUE AN  ORDER
 IN  WRITING APPROVING THE APPLICATION IF THE APPLICANT HAS COMPLIED WITH
 THE REQUIREMENTS FOR A STATEWIDE  FRANCHISE,  OR  THE  COMMISSION  SHALL
 DISAPPROVE THE APPLICATION IN WRITING CITING THE REASONS FOR DISAPPROVAL
 IF  THE  BOARD DETERMINES THAT THE APPLICATION FOR A STATEWIDE FRANCHISE
 DOES NOT COMPLY WITH THE REQUIREMENTS FOR  A  STATEWIDE  FRANCHISE.  THE
 COMMISSION MAY DENY THE APPLICATION IF THE APPLICANT HAS FAILED TO STATE
 IN  THE  APPLICATION  THE  INFORMATION  AND  REPRESENTATIONS REQUIRED BY
 SUBDIVISION TWO OF THIS SECTION. IF THE COMMISSION DENIES  THE  APPLICA-
 TION,  IT  MUST SPECIFY WITH PARTICULARITY THE REASON OR REASONS FOR THE
 DENIAL, AND THE APPLICANT MAY AMEND ITS APPLICATION TO  CURE  ANY  DEFI-
 CIENCY.  THE COMMISSION SHALL DECIDE SUCH AMENDED APPLICATION WITHIN TEN
 BUSINESS DAYS OF ITS SUBMISSION TO THE COMMISSION BY THE APPLICANT.   IF
 THE  COMMISSION  DENIES THE APPLICATION, THE COMMISSION SHALL SCHEDULE A
 PUBLIC MEETING WITH THE  APPLICANT  TO  EXPLAIN  TO  THE  APPLICANT  THE
 REASONS  FOR  THE COMMISSION'S DISAPPROVAL. SUCH MEETING SHALL BE SCHED-
 ULED NO LATER THAN THIRTY DAYS FOLLOWING THE EXPIRATION OF THE SIXTY-DAY
 REVIEW PERIOD AS REQUIRED BY THIS  SECTION.  THE  APPLICANT  SHALL  HAVE
 THIRTY  DAYS  FOLLOWING  THE  DATE OF THE MEETING WITH THE COMMISSION TO
 FILE AN APPEAL OF THE BOARD'S DECISION. THE COMMISSION SHALL  THEREAFTER
 SCHEDULE  AN  ADMINISTRATIVE  HEARING  NOT  LATER THAN THE THIRTIETH DAY
 FOLLOWING THE DATE OF THE FILING OF THE APPLICANT'S APPEAL IN  ORDER  TO
 CONSIDER  THE  APPLICANT'S  APPEAL.  THE  COMMISSION SHALL ISSUE A FINAL
 DECISION IN WRITTEN FORM ON THE APPLICANT'S APPEAL NOT  LATER  THAN  THE
 SIXTIETH  DAY  FOLLOWING  THE  ADMINISTRATIVE  HEARING, REQUIRED BY THIS
 SUBDIVISION, ON THE APPLICANT'S APPEAL. AFTER AN  ADMINISTRATIVE  PERIOD
 AN APPLICANT MAY CHALLENGE A DENIAL OF ITS APPLICATION OR AMENDED APPLI-
 CATION IN ANY COURT OF COMPETENT JURISDICTION.
   6.  A STATEWIDE FRANCHISE AUTHORIZATION ISSUED BY THE COMMISSION SHALL
 CONTAIN:
   (A) A GRANT OF A FRANCHISE TO PROVIDE CABLE  SERVICE  IN  THE  SERVICE
 AREA  FOOTPRINT  DESCRIBED  IN  THE  APPLICATION; TO CONSTRUCT, UPGRADE,
 OPERATE OR MAINTAIN A NETWORK CAPABLE OF PROVIDING SUCH SERVICE,  EXCEPT
 WHERE  THIS  GRANT  IS  NOT  REQUIRED  AND  TO USE AND OCCUPY THE PUBLIC
 RIGHTS-OF-WAY IN THE DELIVERY OF THAT SERVICE; AND

 S. 2880                            25
 
   (B) A STATEMENT THAT THE FRANCHISE GRANT IN SUBDIVISION  ONE  OF  THIS
 SECTION  IS  SUBJECT  TO  LAWFUL  OPERATION  OF THE CABLE SERVICE BY THE
 APPLICANT OR ITS SUCCESSOR IN INTEREST.
   7.  AN  APPLICANT  HAVING PRE-EXISTING AUTHORITY TO UTILIZE THE PUBLIC
 RIGHTS-OF-WAY IS REQUIRED TO OBTAIN A STATEWIDE FRANCHISE PRIOR  TO  THE
 ACTUAL  PROVISION  OF  CABLE  SERVICE  ON A COMMERCIAL BASIS DIRECTLY TO
 SUBSCRIBERS. HOWEVER, SUCH AN APPLICANT IS  NOT  REQUIRED  TO  OBTAIN  A
 STATEWIDE  FRANCHISE OR ANY MUNICIPALITY AUTHORIZATION, EXCEPT FOR BEING
 SUBJECT  TO  MUNICIPALITY  RIGHT-OF-WAY  REQUIREMENTS,   IN   ORDER   TO
 CONSTRUCT,  UPGRADE,  OPERATE  OR  MAINTAIN A NETWORK THAT IS CAPABLE OF
 PROVIDING CABLE SERVICE.
   8. A SYSTEM-WIDE FRANCHISE ISSUED BY THE BOARD SHALL BE  NONTRANSFERA-
 BLE, EXCEPT BY WRITTEN CONSENT OF THE BOARD.
   §  235. LENGTH OF STATEWIDE FRANCHISE. A STATEWIDE FRANCHISE ISSUED BY
 THE COMMISSION SHALL BE VALID FOR TEN YEARS FROM THE DATE  OF  ISSUANCE.
 RENEWAL OF A SYSTEMWIDE FRANCHISE SHALL BE VALID FOR A PERIOD OF FIFTEEN
 YEARS  FROM  THE  DATE OF THE RENEWAL ISSUANCE, AND THE COMMISSION SHALL
 ESTABLISH RULES GOVERNING THE RENEWAL OF A SYSTEMWIDE FRANCHISE.
   § 236. TERMINATION OF A STATEWIDE  FRANCHISE.  1.  A  FRANCHISE  SHALL
 TERMINATE  AT THE EXPIRATION OF ITS TERM OR OTHERWISE IN ACCORDANCE WITH
 THE PROVISIONS THEREOF, UNLESS, PRIOR THERETO, THE COMMISSION  OTHERWISE
 ORDERS.  THE  COMMISSION  MAY  SO  ORDER  ONLY IF IT FINDS, AFTER PUBLIC
 NOTICE AND OPPORTUNITY FOR A HEARING, THAT THE FRANCHISEE:
   (A) HAS COMMITTED A MATERIAL BREACH OF ITS FRANCHISE OR ANY APPLICABLE
 PROVISION OF THIS ARTICLE OR OF THE  REGULATIONS  PROMULGATED  HEREUNDER
 AND  HAS  FAILED,  WITHOUT REASONABLE JUSTIFICATION, TO CURE SAID BREACH
 WITHIN SIXTY DAYS AFTER HAVING RECEIVED WRITTEN NOTICE THEREOF FROM  THE
 COMMISSION; OR
   (B)  HAS  NOT MET THE REQUIREMENTS OF SECTIONS TWO HUNDRED FORTY-THREE
 AND TWO HUNDRED FORTY-FOUR OF THIS ARTICLE;
   (C) HAS ENGAGED IN BLOCKING OF LAWFUL CONTENT ON WEB SITES OR SERVICES
 OF COMPETITORS, OR REFUSED  TO  INTERCONNECT  ITS  FACILITIES  WITH  THE
 FACILITIES  OF ANOTHER PROVIDER OF BROADBAND NETWORK SERVICES ON REASON-
 ABLE AND NONDISCRIMINATORY TERMS OR CONDITIONS; OR
   (D) HAS BEEN ADJUDICATED A BANKRUPT OR HAS FILED A VOLUNTARY  PETITION
 FOR  BANKRUPTCY  OR REORGANIZATION OR FOR AN ORDER PROTECTING ITS ASSETS
 FROM THE CLAIMS OF CREDITORS AND THE COMMISSION FINDS  THAT  TERMINATION
 OF THE FRANCHISE OR CERTIFICATE OF CONFIRMATION UNDER SUCH CONDITIONS IS
 IN THE BEST INTEREST OF THE PUBLIC.
   2. UPON TERMINATION OF A FRANCHISE OR CERTIFICATE OF CONFIRMATION, THE
 CABLE  OPERATOR  SHALL  DISPOSE OF ITS FACILITIES IN ACCORDANCE WITH THE
 PROVISIONS OF THE FRANCHISE OR CERTIFICATE. HOWEVER, ON  MOTION  OF  ANY
 INTERESTED  PARTY  OR  UPON  ITS OWN MOTION, AND AFTER PUBLIC NOTICE AND
 OPPORTUNITY FOR HEARING, IF THE  COMMISSION  FINDS  THAT  THE  CONTINUED
 PRESENCE  OF  THE  FACILITIES  IN  ANY  PUBLIC THOROUGHFARE WOULD POSE A
 NUISANCE TO THE MUNICIPALITY OR ITS RESIDENTS, THE OPERATOR SHALL REMOVE
 ITS FACILITIES WITHIN SUCH PERIOD AS THE COMMISSION SHALL ORDER. IN  THE
 ABSENCE OF ANY APPLICABLE FRANCHISE OR CERTIFICATE PROVISION OR ORDER BY
 THE COMMISSION TO THE CONTRARY, THE CABLE TELEVISION COMPANY MAY ABANDON
 ITS FACILITIES.
   §  237.  ABANDONMENT  OF SERVICE. 1. NO CABLE OPERATOR MAY ABANDON ANY
 SERVICE OR PORTION THEREOF WITHOUT  GIVING  SIX  MONTHS'  PRIOR  WRITTEN
 NOTICE TO THE COMMISSION AND TO THE FRANCHISOR, IF ANY, AND TO THE MUNI-
 CIPALITIES IT SERVES.
   2.  WHEN  ABANDONMENT  OF ANY SERVICE IS PROHIBITED BY A FRANCHISE, NO
 CABLE OPERATOR MAY ABANDON SUCH SERVICE WITHOUT WRITTEN CONSENT  OF  THE

 S. 2880                            26
 
 COMMISSION.  IN  GRANTING  SUCH  CONSENT, THE COMMISSION MAY IMPOSE SUCH
 TERMS, CONDITIONS OR REQUIREMENTS AS IN ITS JUDGMENT  ARE  NECESSARY  TO
 PROTECT THE PUBLIC INTEREST.
   §  238. MUNICIPAL POWER AND REGULATION OVER FRANCHISE HOLDERS. A MUNI-
 CIPALITY MAY:
   1. EXERCISE ITS PUBLIC RIGHTS-OF-WAY AUTHORITY OVER FRANCHISE HOLDERS,
 INCLUDING REQUIRING FRANCHISE HOLDERS TO FOLLOW MUNICIPAL ORDINANCES  AS
 WELL AS ALL APPLICABLE LOCAL, STATE AND FEDERAL LAWS;
   2. RECEIVE, MEDIATE, AND RESOLVE CABLE SERVICE QUALITY COMPLAINTS FROM
 A FRANCHISE HOLDER'S CUSTOMERS WITHIN THE MUNICIPALITY;
   3.  REQUIRE  A  FRANCHISE HOLDER WHO IS PROVIDING CABLE SERVICE WITHIN
 THE MUNICIPALITY TO REGISTER WITH THE MUNICIPALITY, MAINTAIN A POINT  OF
 CONTACT,  AND  PROVIDE NOTICE OF ANY FRANCHISE AUTHORIZATION TRANSFER TO
 THE MUNICIPALITY WITHIN FOURTEEN BUSINESS DAYS AFTER THE  COMPLETION  OF
 THE TRANSFER;
   4. ESTABLISH REASONABLE GUIDELINES REGARDING THE USE OF PUBLIC, EDUCA-
 TIONAL,  AND  GOVERNMENTAL  ACCESS  CHANNELS  WITHIN THE MUNICIPALITY IN
 ADDITION TO THOSE ESTABLISHED IN SECTION TWO HUNDRED FORTY-ONE  OF  THIS
 ARTICLE.
   § 239. PAYMENT AND REMITTANCE OF FRANCHISE FEE. 1. THE FRANCHISE HOLD-
 ER  WHO  OFFERS  CABLE SERVICE WITHIN THE JURISDICTION OF A MUNICIPALITY
 SHALL CALCULATE AND REMIT TO THE MUNICIPALITY AT THE END OF EACH  CALEN-
 DAR YEAR QUARTER A FRANCHISE FEE, AS PROVIDED IN THIS SECTION. THE OBLI-
 GATION TO CALCULATE AND REMIT THE FRANCHISE FEE TO A MUNICIPALITY BEGINS
 IMMEDIATELY  UPON  PROVISION OF CABLE SERVICE WITHIN THAT MUNICIPALITY'S
 JURISDICTION, BUT THE FIRST REMITTANCE SHALL NOT BE DUE UNTIL THE END OF
 THE FIRST CALENDAR YEAR QUARTER THAT IS LATER THAN  ONE  HUNDRED  EIGHTY
 DAYS AFTER THE PROVISION OF CABLE SERVICE BEGAN.
   2.  THE FRANCHISE FEE SHALL BE CALCULATED AS A PERCENTAGE OF THE HOLD-
 ER'S GROSS REVENUES, AS DEFINED IN SECTION  TWO  HUNDRED  THIRTY-ONE  OF
 THIS  ARTICLE  AND  SHALL BE FIVE PERCENT.  A MUNICIPALITY MAY, BY ORDI-
 NANCE, CHANGE THE PERCENTAGE APPLIED TO THE GROSS REVENUES OF THE  HOLD-
 ER.
   3.  NO  FEE  UNDER THIS SECTION WILL BECOME DUE UNTIL THE MUNICIPALITY
 CERTIFIES AND PROVIDES DOCUMENTATION TO THE FRANCHISE HOLDER  SUPPORTING
 THE  PERCENTAGE  PAID  BY  ANY INCUMBENT CABLE OPERATOR SERVING THE AREA
 WITHIN THE MUNICIPALITY'S JURISDICTION.
   4. NO MUNICIPALITY OR ANY OTHER POLITICAL SUBDIVISION  OF  THIS  STATE
 MAY  ASSESS ANY ADDITIONAL FEES OR CHARGES OR REQUIRE OTHER REMUNERATION
 OF ANY KIND FROM THE FRANCHISE HOLDER OTHER THAN AS SET  FORTH  IN  THIS
 SECTION,  PROVIDED,  HOWEVER,  THAT THE PROVISION OF IN-KIND SERVICES OR
 SUPPORT, PERSONNEL AND FUNDING  DEDICATED  TO  PUBLIC,  EDUCATIONAL  AND
 GOVERNMENT  FACILITIES  AND  SERVICES SHALL NOT BE CONSIDERED ADDITIONAL
 FEES, CHARGES OR REMUNERATION.
   5. FOR PURPOSES OF THIS SECTION, IN THE CASE OF A CABLE  SERVICE  THAT
 MAY BE BUNDLED OR INTEGRATED FUNCTIONALLY WITH OTHER SERVICES, CAPABILI-
 TIES  OR  APPLICATIONS,  THE  FRANCHISE FEE SHALL BE APPLIED ONLY TO THE
 GROSS REVENUES, AS  DEFINED  IN  THIS  ARTICLE,  ATTRIBUTABLE  TO  CABLE
 SERVICE  OR  THE USE OF THE CABLE SYSTEM AND FACILITIES, AS REFLECTED ON
 THE BOOKS AND  RECORDS  OF  THE  HOLDER  IN  ACCORDANCE  WITH  GENERALLY
 ACCEPTED  ACCOUNTING  PRINCIPLES  AND  FEDERAL COMMUNICATIONS COMMISSION
 RULES, REGULATIONS, STANDARDS OR ORDERS, AS APPLICABLE.
   6. THE FRANCHISE FEE SHALL BE REMITTED TO THE APPLICABLE  MUNICIPALITY
 QUARTERLY,  WITHIN  FORTY-FIVE DAYS AFTER THE END OF THE QUARTER FOR THE
 PRECEDING CALENDAR QUARTER. EACH  PAYMENT  SHALL  BE  ACCOMPANIED  BY  A
 SUMMARY  EXPLAINING  THE BASIS FOR THE CALCULATION OF THE FRANCHISE FEE.

 S. 2880                            27
 
 NOT MORE THAN ONCE ANNUALLY, A MUNICIPALITY MAY  EXAMINE  THE  FRANCHISE
 HOLDER'S  BUSINESS  RECORDS TO THE EXTENT REASONABLY NECESSARY TO ENSURE
 COMPENSATION IN ACCORDANCE WITH THIS SECTION. EACH PARTY SHALL BEAR  THE
 PARTY'S  OWN COSTS OF THE EXAMINATION. ANY CLAIMS BY A MUNICIPALITY THAT
 COMPENSATION IS NOT IN ACCORDANCE WITH THIS SECTION, AND ANY CLAIMS  FOR
 REFUNDS  OR OTHER CORRECTIONS TO THE REMITTANCE OF THE FRANCHISE HOLDER,
 MUST BE MADE WITHIN THREE YEARS AND FORTY-FIVE DAYS OF THE  END  OF  THE
 QUARTER FOR WHICH COMPENSATION IS REMITTED, OR THREE YEARS FROM THE DATE
 OF  REMITTANCE,  WHICHEVER  IS LATER. EITHER A MUNICIPALITY OR THE FRAN-
 CHISE HOLDER MAY, IN THE EVENT  OF  A  DISPUTE  CONCERNING  COMPENSATION
 UNDER  THIS  SECTION,  BRING AN ACTION IN A COURT OF COMPETENT JURISDIC-
 TION.
   § 240. PUBLIC, EDUCATIONAL AND GOVERNMENT CHANNELS. 1. IN ADDITION  TO
 THE  REQUIREMENTS  SET  FORTH  IN 16 NYCRR SEC. 894.4 (AS MAY BE AMENDED
 FROM TIME TO TIME), THE FRANCHISE HOLDER SHALL PROVIDE THE  MUNICIPALITY
 WITH  CAPACITY  IN  ITS  CABLE  SYSTEM TO ALLOW PUBLIC, EDUCATIONAL, AND
 GOVERNMENTAL (PEG) ACCESS CHANNELS FOR  NONCOMMERCIAL  PROGRAMMING.  FOR
 THE  PURPOSES  OF  THIS SECTION, PEG CHANNELS SHALL BE DEFINED AS ANALOG
 CHANNELS OF SIX MEGAHERTZ BANDWIDTH OR THE SAME AS ANY OTHER CHANNEL  ON
 THE  BASIC  TIER,  WHICHEVER IS GREATER. IN ADDITION TO THE REQUIREMENTS
 SET FORTH IN THIS SECTION, THE COMMISSION MAY ISSUE ADDITIONAL RULES  OR
 GUIDELINES  REGARDING  PEG ACCESS CHANNELS. THE HOLDER SHALL PROVIDE THE
 SAME ANCILLARY SERVICES TO THE PEG CHANNELS AND ENTITIES AS  THE  INCUM-
 BENT PROVIDER.
   2. THE FRANCHISE HOLDER SHALL DESIGNATE A SUFFICIENT AMOUNT OF CAPACI-
 TY  ON ITS CABLE SYSTEM TO ALLOW THE PROVISION OF A COMPARABLE NUMBER OF
 PEG CHANNELS OR HOURS OF PROGRAMMING THAT THE INCUMBENT  CABLE  OPERATOR
 HAS  ACTIVATED  AND  PROVIDED WITHIN THE MUNICIPALITY UNDER THE TERMS OF
 ITS FRANCHISE AGREEMENT AS OF THE EFFECTIVE DATE OF THIS ARTICLE.  IF  A
 MUNICIPALITY DID NOT HAVE PEG ACCESS CHANNELS AS OF THAT DATE, THE CABLE
 OPERATOR  SHALL FURNISH TO THE MUNICIPALITY UPON REQUEST UP TO THREE PEG
 CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF AT LEAST FIFTY THOUSAND
 AND UP TO TWO PEG CHANNELS FOR A MUNICIPALITY WITH A POPULATION OF  LESS
 THAN  FIFTY THOUSAND. FOR THE PURPOSES OF THIS SECTION, A PEG CHANNEL IS
 DEEMED ACTIVATED IF IT IS BEING UTILIZED FOR PEG PROGRAMMING WITHIN  THE
 MUNICIPALITY FOR AT LEAST EIGHT HOURS PER DAY AND IF SUCH PROGRAMMING IS
 NOT BROADCAST MORE THAN ONCE IN EVERY EIGHT HOURS. THE HOLDER SHALL HAVE
 TWELVE  MONTHS FROM THE DATE THE MUNICIPALITY REQUESTS SUCH PEG CHANNELS
 TO DESIGNATE THE CAPACITY;  PROVIDED,  HOWEVER,  THAT  THE  TWELVE-MONTH
 PERIOD  SHALL  BE  TOLLED  BY ANY PERIOD DURING WHICH THE DESIGNATION OR
 PROVISION OF PEG CHANNEL CAPACITY IS TECHNICALLY  INFEASIBLE,  INCLUDING
 ANY  FAILURE  OR  DELAY OF THE INCUMBENT CABLE OPERATOR TO MAKE ADEQUATE
 INTERCONNECTION AVAILABLE, AS REQUIRED BY THIS SECTION. IN CITIES WITH A
 POPULATION OF ONE MILLION OR MORE PERSONS, IF A SYSTEM HAS  TOTAL  ACTI-
 VATED  BANDWIDTH  IN EXCESS OF EIGHT HUNDRED SIXTY-TWO MEGAHERTZ THEN AT
 LEAST TWO ADDITIONAL PEG CHANNELS SHALL BE  SET  ASIDE  BY  THE  HOLDER,
 INCLUDING ONE FOR PUBLIC ACCESS.
   3. THE FRANCHISE HOLDER MAY SUBMIT TO THE COMMISSION AN APPLICATION TO
 CEASE  PROVIDING  ANY PEG CHANNEL PROVIDED PURSUANT TO THIS SECTION THAT
 IS NOT UTILIZED BY THE MUNICIPALITY FOR AT LEAST EIGHT  HOURS  PER  DAY,
 AND  EXCEPT AS PROVIDED HEREIN, THE CHANNEL MAY THEREAFTER BE PROGRAMMED
 AT THE FRANCHISE HOLDER'S DISCRETION. THE COMMISSION MAY HOLD A  HEARING
 IN  THE  MUNICIPALITY  TO  AID  IN  MAKING  ITS DETERMINATION WHETHER TO
 APPROVE THE APPLICATION. THE COMMISSION SHALL ISSUE  A  DECISION  WITHIN
 THIRTY  BUSINESS  DAYS  OF  THE FRANCHISEE'S APPLICATION. IF THE MUNICI-
 PALITY SUBSEQUENTLY CERTIFIES TO THE COMMISSION AND  HOLDER  A  SCHEDULE

 S. 2880                            28
 
 FOR AT LEAST EIGHT HOURS OF DAILY NON-REPEAT PEG CHANNEL PROGRAMMING PER
 CHANNEL,  THE  HOLDER  SHALL RESTORE THE PEG CHANNEL OR CHANNELS FOR THE
 USE OF THE MUNICIPALITY FOR AS LONG AS THE MUNICIPALITY USES THE CHANNEL
 OR CHANNELS FOR AT LEAST EIGHT HOURS A DAY.
   4. THE CONTENT AND OPERATION OF ANY PEG ACCESS CHANNEL PROVIDED PURSU-
 ANT  TO  THIS  SECTION  SHALL BE THE RESPONSIBILITY OF THE MUNICIPALITY,
 RECEIVING THE BENEFIT OF SUCH CHANNEL, AND THE  FRANCHISE  HOLDER  BEARS
 ONLY THE RESPONSIBILITY FOR THE TRANSMISSION OF SUCH CHANNEL, SUBJECT TO
 REASONABLE  TECHNOLOGICAL  CONSTRAINTS.  THE  FRANCHISE  HOLDER SHALL BE
 RESPONSIBLE FOR PROVIDING THE CONNECTIVITY, AS WELL AS  OTHER  EQUIPMENT
 NECESSARY,  TO EACH PEG ACCESS CHANNEL PROGRAMMING DISTRIBUTION LOCATION
 AND FOR DOING SO WITHOUT CHARGE FOR UP TO THE FIRST TWO HUNDRED FEET  OF
 THE HOLDER'S CONNECTING FACILITIES.
   5.  THE  MUNICIPALITY,  OR  ITS DESIGNEES, MUST ENSURE THAT ALL TRANS-
 MISSIONS, CONTENT, OR PROGRAMMING TO BE TRANSMITTED OVER  A  PEG  ACCESS
 CHANNEL  OR  FACILITY BY A FRANCHISE HOLDER ARE PROVIDED OR SUBMITTED TO
 THE CABLE OPERATOR IN A MANNER OR FORM THAT IS CAPABLE OF BEING ACCEPTED
 AND TRANSMITTED BY THE CABLE OPERATOR,  WITHOUT  REQUIREMENT  FOR  ADDI-
 TIONAL  ALTERATION  OR CHANGE IN THE CONTENT BY THE CABLE OPERATOR, OVER
 THE CABLE SYSTEM OF THE  CABLE  OPERATOR.  THE  MUNICIPALITY'S,  OR  ITS
 DESIGNEES'  PROVISION  OF  PEG  CONTENT  TO  THE HOLDER SHALL CONSTITUTE
 AUTHORIZATION FOR THE HOLDER TO CARRY SUCH  CONTENT  INCLUDING,  AT  THE
 HOLDER'S  OPTION,  BEYOND  THE  JURISDICTIONAL BOUNDARIES OF THE MUNICI-
 PALITY.
   6. THE FRANCHISE HOLDER AND AN  INCUMBENT  CABLE  OPERATOR  SHALL  USE
 REASONABLE  EFFORTS  TO INTERCONNECT THEIR CABLE SYSTEMS FOR THE PURPOSE
 OF PROVIDING PEG PROGRAMMING. INTERCONNECTION  MAY  BE  ACCOMPLISHED  BY
 DIRECT  CABLE,  MICROWAVE LINK, SATELLITE, OR OTHER REASONABLE METHOD OF
 CONNECTION. FRANCHISE HOLDERS AND INCUMBENT CABLE OPERATORS SHALL  NEGO-
 TIATE  IN  GOOD  FAITH  AND  INCUMBENT  CABLE OPERATORS MAY NOT WITHHOLD
 INTERCONNECTION OF PEG CHANNELS. IN THE EVENT A FRANCHISE HOLDER AND  AN
 INCUMBENT  CABLE  OPERATOR  CANNOT REACH A MUTUALLY ACCEPTABLE INTERCON-
 NECTION AGREEMENT, THEN THE DUTY OF THE HOLDER SHALL  BE  DISCHARGED  IF
 THE  HOLDER MAKES INTERCONNECTION AVAILABLE TO THE CHANNEL ORIGINATOR AT
 A POINT ON THE HOLDER'S NETWORK DETERMINED BY THE HOLDER.
   7. THE PEG CHANNELS SHALL BE FOR THE EXCLUSIVE USE OF THE LOCAL ENTITY
 OR ITS DESIGNEE TO PROVIDE PUBLIC, EDUCATIONAL, AND  GOVERNMENTAL  CHAN-
 NELS.    THE PEG CHANNELS SHALL BE USED ONLY FOR NONCOMMERCIAL PURPOSES.
 HOWEVER, ADVERTISING, UNDERWRITING, OR SPONSORSHIP  RECOGNITION  MAY  BE
 CARRIED  ON  THE  CHANNELS FOR THE PURPOSE OF FUNDING PEG-RELATED ACTIV-
 ITIES. THE PEG CHANNELS SHALL ALL BE CARRIED ON THE BASIC SERVICE  TIER.
 TO  THE  EXTENT FEASIBLE, THE PEG CHANNELS SHALL NOT BE SEPARATED NUMER-
 ICALLY FROM OTHER CHANNELS CARRIED ON THE BASIC  SERVICE  TIER  AND  THE
 CHANNEL  NUMBERS  FOR THE PEG CHANNELS SHALL BE THE SAME CHANNEL NUMBERS
 USED BY THE INCUMBENT CABLE OPERATOR UNLESS PROHIBITED BY  FEDERAL  LAW.
 AFTER  THE  INITIAL  DESIGNATION  OF  PEG  CHANNEL  NUMBERS, THE CHANNEL
 NUMBERS SHALL NOT BE CHANGED WITHOUT THE AGREEMENT OF THE  LOCAL  ENTITY
 UNLESS  THE  CHANGE  IS  REQUIRED  BY FEDERAL LAW. EACH CHANNEL SHALL BE
 CAPABLE OF CARRYING A NATIONAL TELEVISION SYSTEM COMMITTEE (NTSC)  TELE-
 VISION SIGNAL.
   8.  THE  CONTENT TO BE PROVIDED OVER THE PEG CHANNEL CAPACITY PROVIDED
 PURSUANT TO THIS SECTION SHALL BE THE RESPONSIBILITY OF THE LOCAL ENTITY
 OR ITS DESIGNEE RECEIVING THE BENEFIT OF THAT CAPACITY, AND  THE  HOLDER
 OF  A STATE FRANCHISE BEARS ONLY THE RESPONSIBILITY FOR THE TRANSMISSION
 OF THAT CONTENT, SUBJECT TO TECHNOLOGICAL RESTRAINTS.

 S. 2880                            29
 
   9. THE PEG SIGNAL SHALL BE RECEIVABLE BY ALL SUBSCRIBERS, WHETHER THEY
 RECEIVE DIGITAL OR ANALOG SERVICE, OR A COMBINATION THEREOF, WITHOUT THE
 NEED FOR ANY EQUIPMENT OTHER THAN THE EQUIPMENT NECESSARY TO RECEIVE THE
 LOWEST COST TIER OF SERVICE. THE PEG ACCESS CAPACITY PROVIDED  SHALL  BE
 OF SIMILAR QUALITY AND FUNCTIONALITY TO THAT OFFERED BY COMMERCIAL CHAN-
 NELS ON THE LOWEST COST TIER OF SERVICE UNLESS THE SIGNAL IS PROVIDED TO
 THE HOLDER AT A LOWER QUALITY OR WITH LESS FUNCTIONALITY.
   10.  AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, AND UNTIL THE EXPIRA-
 TION OF THE INCUMBENT CABLE OPERATOR'S FRANCHISE, IF THE INCUMBENT CABLE
 OPERATOR HAS EXISTING UNSATISFIED OBLIGATIONS  UNDER  THE  FRANCHISE  TO
 REMIT  TO  THE  LOCAL  ENTITY  OR ITS DESIGNEE ANY CASH PAYMENTS FOR THE
 ONGOING COSTS OF PUBLIC,  EDUCATIONAL,  AND  GOVERNMENT  ACCESS  CHANNEL
 FACILITIES,  THE  LOCAL  ENTITY,  OR  ITS DESIGNEE FOR THE PUBLIC ACCESS
 CHANNELS, SHALL DIVIDE THOSE CASH PAYMENTS  AMONG  ALL  CABLE  OR  VIDEO
 PROVIDERS AS PROVIDED IN THIS SECTION. THE FEE SHALL BE THE HOLDER'S PRO
 RATA PER SUBSCRIBER SHARE OF THE CASH PAYMENT REQUIRED TO BE PAID BY THE
 INCUMBENT  CABLE  OPERATOR TO THE LOCAL ENTITY OR ITS DESIGNEE COMMUNITY
 ACCESS ORGANIZATION FOR THE COSTS OF PEG CHANNEL FACILITIES.  ALL  VIDEO
 SERVICE  PROVIDERS  AND THE INCUMBENT CABLE OPERATOR SHALL BE SUBJECT TO
 THE SAME REQUIREMENTS FOR RECURRING PAYMENTS  FOR  THE  SUPPORT  OF  PEG
 CHANNEL  FACILITIES,  WHETHER EXPRESSED AS A PERCENTAGE OF GROSS REVENUE
 OR AS AN AMOUNT PER SUBSCRIBER, PER MONTH, OR OTHERWISE.
   11. A LOCAL ENTITY SHALL ESTABLISH A PAYMENT FOR THE  ONGOING  SUPPORT
 OF  THE  COST OF PEG FACILITIES AND SERVICES THAT WOULD BECOME EFFECTIVE
 SUBSEQUENT TO THE  EXPIRATION  OF  ANY  FEE  IMPOSED  BY  THIS  ARTICLE,
 PROVIDED,  HOWEVER,  THAT  NO  SUCH FEE SHALL BE ALLOCATED SUCH THAT ANY
 COMMUNITY ACCESS ORGANIZATION IS RECEIVING ANYTHING LESS THAN WHAT IT IS
 RECEIVING FROM THE CABLE OPERATOR ON THE EFFECTIVE DATE OF  THIS  LEGIS-
 LATION, AND PROVIDED, HOWEVER, THAT EVERY LOCAL ENTITY SHALL BE ENTITLED
 TO  A  PAYMENT  OF  NOT LESS THAN TWO PERCENT FROM THE HOLDER OF A STATE
 FRANCHISE FOR THE ONGOING SUPPORT OF THE  COST  OF  PEG  FACILITIES  AND
 SERVICES.  IF, ON DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, A LOCAL
 ENTITY OR ITS DESIGNEE WAS IMPOSING A SEPARATE FEE TO SUPPORT PEG  CHAN-
 NEL  FACILITIES  THAT  IS  IN  EXCESS OF TWO PERCENT, THAT ENTITY OR ITS
 DESIGNEE MAY ESTABLISH A FEE NO GREATER THAN THAT SEPARATE FEE,  AND  IN
 NO  EVENT  GREATER THAN THREE PERCENT, TO SUPPORT PEG ACTIVITIES. IF THE
 PEG SUPPORT FEE IMPOSED BY A LOCAL ENTITY OR ITS DESIGNEE  IS  EXPRESSED
 IN  A  MANNER  OTHER  THAN  AS A PERCENTAGE OF GROSS REVENUES, THE LOCAL
 ENTITY OR ITS DESIGNEE COMMUNITY ACCESS ORGANIZATION  MAY  CONVERT  THAT
 FEE  TO A CURRENTLY EQUIVALENT PERCENTAGE OF GROSS REVENUES AT ANY TIME.
 THE LOCAL  ENTITY  OR  ITS  DESIGNEE  MAY  ADOPT  REQUIREMENTS  FOR  THE
 PROVISION  OF  PEG-RELATED  IN-KIND  RESOURCES  BY  ALL  CABLE AND VIDEO
 SERVICE PROVIDERS.
   12. RULES AND REGULATIONS ADOPTED BY THE COMMUNITY ACCESS ORGANIZATION
 SHALL GOVERN THE USE OF ANY CHANNEL TIME ON THE PUBLIC CHANNELS AS  WELL
 AS  THE  EQUIPMENT,  FACILITIES AND SERVICES RELATED TO THE PUBLIC CHAN-
 NELS.
   13. THE COMMISSION, THROUGH AN ADMINISTRATIVE  PROCEEDING  SHALL  HAVE
 THE ORIGINAL JURISDICTION TO ENFORCE ANY REQUIREMENTS UNDER THIS SECTION
 TO  RESOLVE  ANY  DISPUTE  REGARDING  THE REQUIREMENTS SET FORTH IN THIS
 SECTION. AFTER THE ADMINISTRATIVE  PROCESS  IS  EXHAUSTED,  A  COURT  OF
 COMPETENT  JURISDICTION  SHALL HAVE JURISDICTION TO ENFORCE ANY REQUIRE-
 MENT UNDER THIS SECTION OR RESOLVE ANY DISPUTE  REGARDING  THE  REQUIRE-
 MENTS  SET  FORTH  IN  THIS SECTION, AND NO CABLE OPERATOR MAY BE BARRED
 FROM THE PROVISION OF CABLE SERVICE OR BE REQUIRED  TO  TERMINATE  CABLE
 SERVICE AS A RESULT OF SUCH DISPUTE OR ENFORCEMENT ACTION.

 S. 2880                            30
 
   §  241.    CABLE  OPERATOR'S  COMMUNITY COMMITMENT. 1. CABLE OPERATORS
 SHALL INSTALL AND RETAIN OR PROVIDE, WITHOUT CHARGE, ONE SERVICE  OUTLET
 ACTIVATED  FOR  BASIC  SERVICE  TO  ANY  AND  ALL  FIRE STATIONS, PUBLIC
 SCHOOLS, POLICE STATIONS, PUBLIC LIBRARIES AND OTHER SUCH BUILDINGS USED
 FOR MUNICIPAL PURPOSES.
   2.  CABLE  OPERATORS  SHALL  PROVIDE INTERNET SERVICE, WITHOUT CHARGE,
 THROUGH ONE SERVICE OUTLET ACTIVATED FOR BASIC SERVICE TO  ANY  AND  ALL
 FIRE  STATIONS,  PUBLIC  SCHOOLS, POLICE STATIONS, PUBLIC LIBRARIES, AND
 OTHER SUCH BUILDING USED FOR MUNICIPAL PURPOSES.
   § 242. CONSUMER  PROTECTION  RULES.  1.  EVERY  CABLE  OPERATOR  SHALL
 PROVIDE  SAFE, ADEQUATE AND RELIABLE SERVICE IN ACCORDANCE WITH APPLICA-
 BLE LAWS, REGULATIONS, AND FRANCHISE REQUIREMENTS. CABLE OPERATORS  WITH
 A STATEWIDE FRANCHISE ARE SUBJECT TO THE REQUIREMENTS UNDER SECTIONS TWO
 HUNDRED  TWENTY-FOUR  AND  TWO HUNDRED TWENTY-FOUR-A OF THIS CHAPTER AND
 ANY OTHER CUSTOMER SERVICE STANDARDS  PERTAINING  TO  THE  PROVISION  OF
 VIDEO  SERVICE  ESTABLISHED  BY  FEDERAL LAW OR REGULATION OR ADOPTED BY
 SUBSEQUENT ENACTMENT  OF  THE  LEGISLATURE.  ALL  CUSTOMER  SERVICE  AND
 CONSUMER  PROTECTION  STANDARDS  UNDER THIS SECTION SHALL BE INTERPRETED
 AND APPLIED TO ACCOMMODATE NEWER OR DIFFERENT TECHNOLOGIES WHILE MEETING
 OR EXCEEDING THE GOALS OF THESE STANDARDS.
   2. IN ADDITION, CABLE OPERATORS:
   (A) SHALL CLEARLY  AND  CONSPICUOUSLY  DISCLOSE  TO  USERS,  IN  PLAIN
 LANGUAGE,  ACCURATE  INFORMATION  CONCERNING  ANY  TERMS, CONDITIONS, OR
 LIMITATIONS ON THE BROADBAND NETWORK SERVICE THEY OFFER, THE  SPEEDS  OF
 THE DOWNLOAD AND UPLOADING SPEEDS OF THE PROVIDER'S INTERNET SERVICE;
   (B) PROVIDE THEIR BROADBAND NETWORK SERVICES ON REASONABLE AND NONDIS-
 CRIMINATORY  TERMS  AND  CONDITIONS  SUCH  THAT  ANY PERSON CAN OFFER OR
 PROVIDE CONTENT, APPLICATIONS, OR SERVICES TO OR OVER THE NETWORK  IN  A
 MANNER THAT IS AT LEAST EQUAL TO THE MANNER IN WHICH THE PROVIDER OR ITS
 AFFILIATES  OFFER  CONTENT,  APPLICATIONS,  AND  SERVICES,  FREE  OF ANY
 SURCHARGE ON THE BASIS OF THE CONTENT, APPLICATION, OR SERVICE;
   (C) INTERCONNECT THEIR FACILITIES WITH THE FACILITIES OF OTHER PROVID-
 ERS OF BROADBAND NETWORK SERVICES ON  REASONABLE  AND  NONDISCRIMINATORY
 TERMS OR CONDITIONS.
   §  243.  NEUTRAL  INTERNET AND BROADBAND NETWORKS. 1.  CABLE OPERATORS
 SHALL NOT:
   (A) BLOCK, IMPAIR, DISCRIMINATE AGAINST, OR INTERFERE WITH THE ABILITY
 OF ANY PERSON TO USE INTERNET BASED TRAFFIC BASED ON THE SOURCE,  DESTI-
 NATION, OR OWNERSHIP OF THE INTERNET TRAFFIC THAT CARRIES VIDEO SERVICE,
 IN A MANNER THAT DEGRADES OR OTHERWISE NEGATIVELY IMPACTS THE ACCESS TO,
 OR THE QUALITY OF SERVICES RECEIVED BY AN END USER;
   (B)  ENGAGE  IN  ANY  EXCLUSIVE OR PREFERENTIAL DEALINGS REGARDING THE
 CARRIAGE AND TREATMENT OF INTERNET TRAFFIC, INCLUDING, BUT  NOT  LIMITED
 TO,  TRAFFIC  THAT  CARRIES  VIDEO PROGRAMMING OR VIDEO SERVICE, WITH AN
 AFFILIATE OR THIRD PARTY PROVIDER OF  INTERNET  APPLICATIONS,  SERVICES,
 CONTENT, OR VIDEO SERVICES;
   (C) IMPOSE AN ADDITIONAL CHARGE TO AVOID ANY CONDUCT THAT IS PROHIBIT-
 ED BY THIS SECTION;
   (D) PROHIBIT A USER FROM ATTACHING OR USING A DEVICE ON THE PROVIDER'S
 INTERNET  OR  BROADBAND NETWORK THAT DOES NOT PHYSICALLY DAMAGE OR MATE-
 RIALLY DEGRADE OTHER USERS' UTILIZATION OF THE NETWORK.
   2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREVENT  A  BROADBAND
 OR INTERNET NETWORK PROVIDER FROM TAKING REASONABLE AND NONDISCRIMINATO-
 RY MEASURES:
   (A)  TO  MANAGE THE FUNCTIONING OF ITS NETWORK TO PROTECT THE SECURITY
 AND TO OFFER PARENTAL CONTROLS AND OTHER CONSUMER PROTECTION MEASURES OF

 S. 2880                            31
 
 SUCH NETWORK AND BROADBAND OR INTERNET NETWORK SERVICES IF SUCH  MANAGE-
 MENT  DOES NOT RESULT IN DISCRIMINATION AMONG THE CONTENT, APPLICATIONS,
 OR SERVICES ON THE NETWORK;
   (B) TO GIVE PRIORITY TO EMERGENCY COMMUNICATIONS; OR
   (C)  TO  PREVENT  A  VIOLATION OF A FEDERAL OR STATE LAW, OR TO COMPLY
 WITH AN ORDER OF A COURT TO ENFORCE  SUCH  LAW,  OR  SUCH  OTHER  ACTION
 AGAINST  NETWORK  THREATS  AS  MAY  BE AUTHORIZED IN SECTION TWO HUNDRED
 FIFTEEN OF THIS CHAPTER.
   § 244. DEPLOYMENT REQUIREMENTS FOR STATEWIDE CABLE FRANCHISE. 1.    AS
 PART  OF ANY FRANCHISE ISSUED BY THE COMMISSION IN THIS ARTICLE, A CABLE
 OPERATOR SHALL BE REQUIRED TO:
   (A) BEGIN PROVIDING CABLE SERVICE ON A COMMERCIAL BASIS, WITHIN  THREE
 YEARS OF ISSUANCE OF THE SYSTEM-WIDE FRANCHISE, IN:
   (I)  EACH  COUNTY SEAT THAT IS WITHIN THE CATV COMPANY'S SERVICE AREA;
 AND
   (II) EACH MUNICIPALITY WITHIN THE CATV COMPANY'S SERVICE AREA THAT HAS
 A POPULATION DENSITY GREATER THAN SEVENTY-ONE HUNDRED ELEVEN PERSONS PER
 SQUARE MILE OF LAND AREA, AS  DETERMINED  BY  THE  MOST  RECENT  FEDERAL
 DECENNIAL  CENSUS,  PROVIDED, HOWEVER, THAT IF SUCH COUNTY SEATS ARE NOT
 LOCATED WITHIN OR CONTIGUOUS TO SUCH MUNICIPALITIES,  EACH  SUCH  COUNTY
 SEAT  SHALL  BE  INTERCONNECTED TO THE NEAREST MUNICIPALITY WITH A POPU-
 LATION DENSITY GREATER THAN PERSONS PER SQUARE MILE OF LAND AREA BY  THE
 CABLE OPERATOR; AND
   (B) MAKE CABLE TELEVISION SERVICE AVAILABLE THROUGHOUT THE RESIDENTIAL
 AREAS  ON  A  COMMERCIAL  BASIS,  BEFORE THE BEGINNING OF THE SIXTH YEAR
 AFTER THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE, IN:
   (I) EACH MUNICIPALITY WITHIN THE STATE THAT HAS A  POPULATION  DENSITY
 GREATER  THAN  FIVE HUNDRED ONE PERSONS PER SQUARE MILE OF LAND AREA, AS
 DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS; AND
   (II) THROUGHOUT THE RESIDENTIAL AREAS OF ANY MUNICIPALITIES SERVED  BY
 CENTRAL  OFFICES  LOCATED  WITHIN  A COUNTY SEAT WITHIN THE FRANCHISEE'S
 SERVICE AREA, SUBJECT TO THE CABLE  OPERATOR'S  LINE  EXTENSION  POLICY;
 PROVIDED,  HOWEVER,  A  CATV  COMPANY MAY APPLY TO THE COMMISSION FOR AN
 EXEMPTION FROM THIS REQUIREMENT IF THE BOARD FINDS, AFTER  CONDUCTING  A
 HEARING  WITH FULL NOTICE AND OPPORTUNITY TO BE HEARD, THAT THE AREAS IN
 QUESTION ARE AREAS IN WHICH THE CATV COMPANY IS  UNABLE  TO  ACCESS  THE
 PUBLIC RIGHTS-OF-WAY UNDER REASONABLE TERMS AND CONDITIONS.
   2.  THE  REQUIREMENTS  OF  SUBDIVISION  ONE OF THIS SECTION SHALL ONLY
 APPLY TO CABLE OPERATORS THAT  ON  THE  DATE  OF  THE  ISSUANCE  OF  THE
 SYSTEM-WIDE  FRANCHISE  PROVIDE  MORE  THAN  FORTY  PERCENT OF THE LOCAL
 EXCHANGE TELEPHONE SERVICE MARKET IN THIS STATE; AND TO CABLE  OPERATORS
 THAT  ON  THE  DATE OF THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE PROVIDE
 TWO HUNDRED FIFTY THOUSAND OR MORE LOCAL  EXCHANGE  TELEPHONE  LINES  IN
 THIS STATE;
   3.  INCUMBENT  CABLE COMPANIES THAT BECOME STATEWIDE FRANCHISE HOLDERS
 SHALL NOT REDUCE THE NUMBER OR PERCENTAGE  OF  HOUSEHOLDS  SERVED;  WILL
 BUILD  OUT  TO ALL RESIDENTIAL HOUSEHOLDS SUBJECT TO THE OPERATOR'S LINE
 EXTENSION POLICY WITHIN THREE YEARS; AND WILL UPGRADE  THEIR  FACILITIES
 TO  THE  ENTIRE  SERVICE  AREA  WITHIN THREE YEARS OF THE DATE THE CABLE
 OPERATOR UPGRADES ANY PART OF ITS FACILITIES.
   4. WITHIN THREE YEARS OF THE ISSUANCE OF THE SYSTEM-WIDE FRANCHISE ALL
 OTHER STATEWIDE FRANCHISE HOLDERS SHALL FULLY COMPLETE A SYSTEM  CAPABLE
 OF PROVIDING CABLE SERVICE TO ALL HOUSEHOLDS WITHIN THE CABLE OPERATOR'S
 SERVICE AREA, SUBJECT TO THE CABLE OPERATOR'S LINE EXTENSION POLICY.
   §  245.   DISCRIMINATION IN THE PROVISIONING OF SERVICE PROHIBITED. 1.
 THE FRANCHISE HOLDER SHALL BECOME CAPABLE OF PROVIDING CABLE SERVICE  TO

 S. 2880                            32
 
 ALL  HOUSEHOLDS  WITHIN  THE  DESIGNATED SERVICE AREA FOOTPRINT. A CABLE
 OPERATOR THAT HAS BEEN GRANTED A STATEWIDE FRANCHISE UNDER THIS  ARTICLE
 SHALL  NOT  DENY ACCESS TO CABLE SERVICE TO ANY GROUP OF POTENTIAL RESI-
 DENTIAL  SUBSCRIBERS  BECAUSE  OF THE INCOME OR RACE OF THE RESIDENTS IN
 THE LOCAL AREA IN WHICH SUCH GROUP RESIDES. A FRANCHISEE MUST SUBMIT  TO
 THE  COMMISSION  A DEPLOYMENT SCHEDULE, SETTING FORTH THE MUNICIPALITIES
 TO BE SERVED, THE DATE SERVICE SHALL  BEGIN  IN  EACH  PROPOSED  MUNICI-
 PALITY,  AND  A  DATE  CERTAIN  BY  WHICH EACH COMMUNITY WILL BE ABLE TO
 RECEIVE CABLE SERVICE. THE COMMISSION WILL  ENSURE  THAT  THE  BUILD-OUT
 PROCESS  IS  NOT  DISCRIMINATORY  BASED  ON  AN AREA'S CLASS OR RACE. IF
 DEPLOYMENT OF CABLE SERVICES UNDER A STATEWIDE  FRANCHISE  IS  SCHEDULED
 FOR DEPLOYMENT IN A GIVEN AREA, THE CABLE OPERATOR MUST OFFER SERVICE TO
 ALL RESIDENTS WITHIN THE GEOGRAPHIC AREA OR THE COMMISSION MAY TERMINATE
 THE  FRANCHISE  PURSUANT TO SECTION TWO HUNDRED THIRTY-SIX OF THIS ARTI-
 CLE.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  THE  FRANCHISE  HOLDER
 SHALL  COMPLY  WITH  CUSTOMER  SERVICE REQUIREMENTS SET FORTH IN ARTICLE
 ELEVEN OF THIS CHAPTER, AT 47 C.F.R.  § 76.309(C) AND ANY OTHER CUSTOMER
 SERVICE STANDARDS PERTAINING TO THE PROVISION OF  VIDEO  SERVICE  ESTAB-
 LISHED  BY  FEDERAL  LAW OR REGULATION OR BY SUBSEQUENT ENACTMENT OF THE
 LEGISLATURE. ALL CUSTOMER  SERVICE  AND  CONSUMER  PROTECTION  STANDARDS
 UNDER THIS SECTION SHALL BE INTERPRETED AND APPLIED TO ACCOMMODATE NEWER
 OR  DIFFERENT TECHNOLOGIES WHILE MEETING OR EXCEEDING THE GOALS OF THESE
 STANDARDS.
   3. IF THE COMMISSION DETERMINES  THAT  A  CABLE  OPERATOR  HAS  DENIED
 ACCESS  OF CABLE SERVICE TO A GROUP OF POTENTIAL RESIDENTIAL SUBSCRIBERS
 BECAUSE OF THE INCOME LEVELS OF THE RESIDENTS OF THE LOCAL AREA IN WHICH
 SUCH GROUP RESIDES OR  HAS  FAILED  TO  MEET  THE  REQUIREMENTS  OF  THE
 SECTION,  THE  COMMISSION  IS  AUTHORIZED TO, AFTER CONDUCTING A HEARING
 WITH FULL NOTICE AND OPPORTUNITY TO BE HEARD, IMPOSE MONETARY  PENALTIES
 OF NOT LESS THAN FIFTY THOUSAND DOLLARS, NOR MORE THAN ONE HUNDRED THOU-
 SAND  DOLLARS  PER  MUNICIPALITY, NOT TO EXCEED A TOTAL OF THREE MILLION
 SIX HUNDRED FIFTY THOUSAND DOLLARS PER YEAR FOR ALL VIOLATIONS. A  MUNI-
 CIPALITY  IN  WHICH THE PROVIDER OFFERS CABLE SERVICE SHALL BE AN APPRO-
 PRIATE PARTY IN ANY SUCH PROCEEDING.
   § 246. ENFORCEMENT. THE EXCLUSIVE REMEDY FOR ENFORCING THE  PROVISIONS
 OF  THIS  ARTICLE,  NOTWITHSTANDING  SPECIFIC  SECTIONS OF THIS ARTICLE,
 SHALL BE AN ACTION IN A  COURT  OF  COMPETENT  JURISDICTION  BROUGHT  BY
 EITHER  THE  MUNICIPALITY, THE ATTORNEY GENERAL ON BEHALF OF THE COMMIS-
 SION OR OTHER INJURED PARTY. AT LEAST SIXTY DAYS BEFORE BRINGING SUCH AN
 ACTION, THE MUNICIPALITY OR ATTORNEY GENERAL SHALL SERVE  THE  FRANCHISE
 HOLDER  WITH A NOTICE SETTING OUT THE ALLEGED VIOLATION AND STATING THAT
 AN ACTION  MAY  BE  BROUGHT  UNLESS  THE  HOLDER  CORRECTS  THE  ALLEGED
 VIOLATION  OR  ENTERS  INTO A BINDING AGREEMENT TO CORRECT THE VIOLATION
 WITHIN THE SIXTY-DAY NOTICE PERIOD. THE NOTICE SHALL  CONTAIN  A  SUFFI-
 CIENTLY  DETAILED  DESCRIPTION  OF  THE  ALLEGED VIOLATION TO ENABLE THE
 FRANCHISE HOLDER TO MAKE A SPECIFIC RESPONSE.
   § 6. Section 215 of the public service law is amended by adding a  new
 subdivision 14 to read as follows:
   14.  REQUIRE THAT CABLE TELEVISION FRANCHISES CONTAIN, UPON SUBMISSION
 FOR  CERTIFICATES  OF  CONFIRMATION, PROVISIONS REQUIRING THAT THE CABLE
 TELEVISION SERVICES FRANCHISEE DELIVER TO THE FRANCHISOR AND THE COMMIS-
 SION, ON AN ANNUAL BASIS, A WRITTEN REPORT DESCRIBING EVERY INSTANCE  IN
 WHICH  SUCH FRANCHISEE BLOCKS, LIMITS OR OTHERWISE RESTRICTS SUBSCRIBERS
 OR OTHER PURCHASERS OF  BROADBAND  SERVICES  FROM  THE  FRANCHISEE  FROM
 ACCESSING  ANY  PARTICULAR INTERNET SITE OR CATEGORY OR TYPE OF INTERNET

 S. 2880                            33

 SITE OR ANY SPECIFIC ELECTRONIC MAIL MESSAGE  OR  CATEGORY  OR  TYPE  OF
 ELECTRONIC  MAIL  ("NEUTRALITY  REPORT").  SUCH  NEUTRALITY REPORT SHALL
 CONTAIN DETAIL OF A SPECIFICITY LEVEL TO BE DETERMINED  BY  THE  COMMIS-
 SION, AND SHALL CONTAIN SUFFICIENT DETAIL TO ALLOW THE COMMISSION OR THE
 FRANCHISOR  TO ASCERTAIN THE NATURE OF ANY BLOCKING, LIMITATION OR OTHER
 RESTRICTIONS, AND THE REASON FOR THE FRANCHISEE FOR TAKING SUCH  ACTION,
 BUT  SHALL  BE  PROVIDED  IN  A  MANNER REASONABLY CALCULATED TO PROTECT
 SUBSCRIBER PRIVACY OR THE LEGITIMATE NEEDS OF LAW  ENFORCEMENT.  NOTHING
 IN THIS SUBDIVISION SHALL BE INTERPRETED TO RESTRICT THE RIGHTS OF FRAN-
 CHISEES,  IF  THEY  SO CHOOSE, TO BLOCK, LIMIT OR OTHERWISE RESTRICT THE
 PASSAGE OF ELECTRONIC MAIL MESSAGES  OR  OTHER  CONTENT  THAT  TRANSMIT,
 PORTRAY,  DESCRIBE, REPRESENT OR OTHERWISE CONTAIN MATTERS SUCH AS CHILD
 PORNOGRAPHY OR SIMILAR OBSCENITY, OTHER UNLAWFUL  MATERIAL,  THREATS  OF
 SERIOUS BODILY HARM, THREATS TO THE PUBLIC SAFETY AND HOMELAND SECURITY,
 THREATS  OF  DEATH  TO  INDIVIDUALS OR GROUPS OF INDIVIDUALS, VIRUSES OR
 SIMILAR COMPUTER GENERATED PROGRAMS OR CODE THAT HAVE THE  POTENTIAL  TO
 HARM  COMPUTER HARDWARE AND/OR SOFTWARE AND/OR NETWORKS, EXCESSIVE UNSO-
 LICITED COMMERCIAL EMAIL THAT DEGRADES OR INTERFERES WITH OR  HARMS  THE
 NORMAL OPERATION OF BROADBAND NETWORKS, AND OTHER SIMILAR TYPES OR FORMS
 OF  MATERIAL  OR  SOFTWARE (THE FOREGOING EXAMPLES ARE ILLUSTRATIVE, NOT
 EXHAUSTIVE OF SUCH THREATS TO USERS  AND/OR  THE  NETWORK,  COLLECTIVELY
 HEREAFTER  "NETWORK  THREATS").  BLOCKING  OR  LIMITATION  OF SUBSCRIBER
 ACCESS TO THE MAXIMALLY DIVERSE INTERNET, IF  NOT  PREDICATED  UPON  THE
 FRANCHISEE'S  RIGHT  TO  DEFEND  ITS  NETWORK  AND  SUBSCRIBERS  AGAINST
 "NETWORK THREATS", SHALL PRESUMPTIVELY BE A BREACH OF THE FRANCHISE.  NO
 FRANCHISEE  SHALL  BE  RESPONSIBLE OR LIABLE FOR ANY EFFORTS BY OR POLI-
 CIES, PRACTICES OR  PROCEDURES  OF  AN  UNAFFILIATED  TELECOMMUNICATIONS
 SERVICES  PROVIDER  OR  INTERNET  SERVICES PROVIDER OR INTERNET PROTOCOL
 TRAFFIC ROUTING ENTITY TO BLOCK SUBSCRIBERS FROM ACCESSING ANY  INTERNET
 SITE OR ANY CATEGORY OR TYPE OF INTERNET SITE OR ANY SPECIFIC ELECTRONIC
 MAIL MESSAGE OR ANY CATEGORY OR TYPE OF ELECTRONIC MAIL.
   §  7.  Section 99 of the public service law is amended by adding a new
 subdivision 4 to read as follows:
   4.  NO BUILDING OWNER MAY DISCRIMINATE AGAINST  A  TELEPHONE  COMPANY,
 BROADBAND  SERVICES  OR ADVANCED COMMUNICATIONS COMPANY OR THEIR ABILITY
 TO PROVIDE SERVICES TO ONE OR MORE TENANTS OF  A  MULTI-TENANT  PROPERTY
 THAT IS OWNED OR CONTROLLED BY THE BUILDING OWNER, INCLUDING DISCRIMINA-
 TORY  TERMS  AND  CONDITIONS  BY  WHICH THE TELEPHONE COMPANY, BROADBAND
 SERVICES OR ADVANCED COMMUNICATIONS COMPANY GAIN PHYSICAL ACCESS TO  THE
 PROPERTY TO PLACE ITS FACILITIES AND PROVIDE TELECOMMUNICATIONS SERVICES
 TO  THE  PROPERTY'S  TENANTS.  THE COMMISSION SHALL HAVE JURISDICTION TO
 IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION BY  APPROPRIATE  RULES  AND
 REGULATIONS  AND  TO  ADMINISTRATIVELY ADJUDICATE DISPUTES ARISING UNDER
 THIS SUBDIVISION. IN NO EVENT MAY THE LACK OF AGREEMENT OVER  TERMS  AND
 CONDITIONS  OF  ACCESS  DELAY  THE  ABILITY OF A REQUESTING TELECOMMUNI-
 CATIONS COMPANY TO OBTAIN ACCESS FOR MORE THAN THIRTY DAYS FOLLOWING  AN
 INITIAL REQUEST THEREFOR.
   § 8. Subdivision 2 of section 99 of the public service law, as amended
 by chapter 383 of the laws of 1996, is amended to read as follows:
   2.  (A) No franchise nor any right to or under any franchise to own or
 operate a telegraph line or telephone line  shall  be  assigned,  trans-
 ferred,  or  leased,  nor shall any contract or agreement hereafter made
 with reference to or affecting any such franchise or right be  valid  or
 of  any  force  or effect whatsoever[,] unless the assignment, transfer,
 lease, contract, or agreement shall have been approved  by  the  commis-
 sion.

 S. 2880                            34
 
   (B)  No  telephone  corporation  shall  transfer or lease its works or
 system or any part of such works or system to any other person or corpo-
 ration or contract for the operation of its works or  system[,]  without
 the  written  consent of the commission. [Notwithstanding the foregoing,
 any  such  transfer  or  lease  between  affiliated corporations with an
 original cost of (a) less than one hundred thousand dollars proposed  by
 a  telephone  corporation  having annual gross revenues in excess of two
 hundred million dollars, (b)  less  than  twenty-five  thousand  dollars
 proposed by a telephone corporation having annual gross revenues of less
 than  two  hundred million but more than ten million dollars or (c) less
 than ten thousand dollars proposed by  a  telephone  corporation  having
 annual  gross  revenues  of  less than ten million dollars and any other
 transfer or lease between non-affiliates regardless  of  cost  shall  be
 effective  without  the  commission's written consent within ninety days
 after such corporation notifies the commission that it plans to complete
 such transfer or lease and submits a  description  of  the  transfer  or
 lease,  unless  the  commission, or its designee, determines within such
 ninety days that the public interest requires  the  commission's  review
 and written consent.]
   (C) (1) NO CONSENT SHALL BE GIVEN BY THE COMMISSION TO THE ASSIGNMENT,
 TRANSFER, OR LEASE OF ANY RIGHT OR FRANCHISE TO OPERATE A TELEGRAPH LINE
 OR  TELEPHONE LINE UNLESS IT SHALL HAVE BEEN SHOWN THAT SUCH ASSIGNMENT,
 TRANSFER, OR LEASE IS IN THE PUBLIC INTEREST.
   (2) NO CONSENT SHALL BE GIVEN BY THE  COMMISSION  TO  THE  ASSIGNMENT,
 TRANSFER,  OR  LEASE  OF ANY RIGHT OR FRANCHISE TO OPERATE ANY PART OF A
 TELEPHONE CORPORATION'S WORKS OR SYSTEM, OR TO A CONTRACT FOR THE OPERA-
 TION OF SUCH ENTITY'S WORKS OR SYSTEM, UNLESS IT SHALL HAVE  BEEN  SHOWN
 THAT  SUCH  ASSIGNMENT,  TRANSFER, OR LEASE OR CONTRACT IS IN THE PUBLIC
 INTEREST.
   (D) BEFORE AUTHORIZING THE MERGER, ACQUISITION, ASSIGNMENT, LEASE,  OR
 TRANSFER  OF  CONTROL  OF  ANY TELEPHONE CORPORATION ORGANIZED AND DOING
 BUSINESS IN THIS STATE, WHERE ANY OF THE ENTITIES THAT  ARE  PARTIES  TO
 THE  PROPOSED  TRANSACTION  HAS GROSS ANNUAL NEW YORK REVENUES EXCEEDING
 TWO HUNDRED MILLION DOLLARS, THE COMMISSION SHALL FIND THAT THE PROPOSAL
 DOES ALL OF THE FOLLOWING:
   (1) PROVIDES SHORT-TERM AND LONG-TERM ECONOMIC BENEFITS TO RATEPAYERS.
   (2) EQUITABLY ALLOCATES, WHERE THE COMMISSION HAS RATEMAKING  AUTHORI-
 TY,  THE TOTAL SHORT-TERM AND LONG-TERM FORECASTED ECONOMIC BENEFITS, AS
 DETERMINED BY THE COMMISSION, OF THE PROPOSED  MERGER,  ACQUISITION,  OR
 CONTROL  BETWEEN  SHAREHOLDERS  AND RATEPAYERS. RATEPAYERS SHALL RECEIVE
 NOT LESS THAN FORTY PERCENT OF SUCH BENEFITS.
   (3) MAINTAINS OR IMPROVES THE FINANCIAL  CONDITION  OF  THE  RESULTING
 TELEPHONE  CORPORATIONS  DOING BUSINESS IN THE STATE AND DOES NOT UNREA-
 SONABLY ALLOCATE A TELEPHONE CORPORATION'S DEBT TO A DIVESTITURE  ENTITY
 CREATED  FROM AN EXISTING TELEPHONE CORPORATION. FOR THE PURPOSE OF THIS
 SECTION, A DIVESTITURE ENTITY  IS  A  BUSINESS  ENTITY  CREATED  BY  THE
 ASSIGNMENT,  EXCHANGE,  SALE,  OR  OTHER  TRANSFER  OF SOME OR ALL OF AN
 EXISTING TELEPHONE CORPORATION'S LINES, SYSTEM, OR WORKS TO A NEW  TELE-
 PHONE CORPORATION.
   (4)  MAINTAINS  OR IMPROVES THE QUALITY OF SERVICE TO TELEPHONE CORPO-
 RATION RATEPAYERS IN THE STATE.
   (5) MAINTAINS OR IMPROVES THE QUALITY OF MANAGEMENT OF  THE  RESULTING
 TELEPHONE CORPORATION DOING BUSINESS IN THE STATE.
   (6)  IS  FAIR AND REASONABLE TO AFFECTED TELEPHONE CORPORATION EMPLOY-
 EES, INCLUDING BOTH UNION AND NONUNION EMPLOYEES.

 S. 2880                            35
 
   (7) IS FAIR AND REASONABLE TO THE MAJORITY OF ALL  AFFECTED  TELEPHONE
 CORPORATIONS.
   (8) IS BENEFICIAL ON AN OVERALL BASIS TO STATE AND LOCAL ECONOMIES AND
 TO  THE  COMMUNITIES IN THE AREA SERVED BY THE RESULTING ENTITY AND DOES
 NOT ALLOCATE SUBSTANTIALLY UNFUNDED PENSION OR HEALTH  CARE  OBLIGATIONS
 OR OTHER EMPLOYEE BENEFITS TO A RESULTING TELEPHONE CORPORATION.
   (9)  PRESERVES  THE JURISDICTION OF THE COMMISSION AND THE CAPACITY OF
 THE COMMISSION TO EFFECTIVELY REGULATE AND AUDIT  TELEPHONE  CORPORATION
 OPERATIONS IN THE STATE.
   (10)  PROVIDES  MITIGATION  MEASURES  TO  PREVENT  SIGNIFICANT ADVERSE
 CONSEQUENCES WHICH MAY RESULT.
   (11) DOES NOT ADVERSELY AFFECT COMPETITION. IN  MAKING  THIS  FINDING,
 THE  COMMISSION  SHALL  REQUEST  AN  ADVISORY  OPINION FROM THE ATTORNEY
 GENERAL REGARDING WHETHER OR NOT COMPETITION WILL BE ADVERSELY  AFFECTED
 AND  WHAT MITIGATORY MEASURES COULD BE ADOPTED TO AVOID ANY SUCH ADVERSE
 EFFECT.
   (E) WHEN REVIEWING A  MERGER,  ACQUISITION,  OR  TRANSFER  OF  CONTROL
 PROPOSAL,  THE  COMMISSION  SHALL  CONSIDER  REASONABLE  ALTERNATIVES OR
 MODIFICATIONS TO THE PROPOSAL RECOMMENDED BY OTHER PARTIES, INCLUDING NO
 MERGER, ACQUISITION, OR CONTROL, TO DETERMINE WHETHER OR NOT  COMPARABLE
 SHORT-TERM  AND LONG-TERM ECONOMIC SAVINGS CAN BE ACHIEVED THROUGH OTHER
 MEANS WHILE AVOIDING THE POSSIBLE ADVERSE CONSEQUENCES OF THE PROPOSAL.
   (F) THE PERSON OR CORPORATION SEEKING  ACQUISITION  OR  CONTROL  OF  A
 TELEPHONE  CORPORATION  ORGANIZED AND DOING BUSINESS IN THIS STATE SHALL
 HAVE BEFORE THE COMMISSION THE BURDEN OF PROVING BY A  PREPONDERANCE  OF
 THE  EVIDENCE THAT THE REQUIREMENTS OF PARAGRAPH (D) OF THIS SUBDIVISION
 ARE MET.
   (G) IN DETERMINING WHETHER OR NOT AN ACQUIRING  TELEPHONE  CORPORATION
 HAS  GROSS  ANNUAL  REVENUES EXCEEDING THE AMOUNT SPECIFIED IN PARAGRAPH
 (D) OF THIS SUBDIVISION, THE REVENUES OF  THAT  TELEPHONE  CORPORATION'S
 AFFILIATES  SHALL  NOT  BE  CONSIDERED,  UNLESS  THE  AFFILIATE IS TO BE
 UTILIZED FOR THE PURPOSE  OF  EFFECTING  SUCH  MERGER,  ACQUISITION,  OR
 CONTROL.
   (H)  SUBPARAGRAPHS  ONE  AND  TWO OF PARAGRAPH (D) OF THIS SUBDIVISION
 SHALL NOT APPLY TO THE FORMATION OF A HOLDING COMPANY.
  (I) SUBPARAGRAPHS ONE AND TWO OF  PARAGRAPH  (D)  OF  THIS  SUBDIVISION
 SHALL  NOT APPLY TO ACQUISITIONS OR CHANGES IN CONTROL THAT ARE MANDATED
 BY EITHER THE COMMISSION OR THE LEGISLATURE.
   § 9. Section 100 of the public service law, as amended by chapter  226
 of the laws of 2009, is amended to read as follows:
   § 100. Transfer and ownership of stock. 1. No telegraph corporation or
 telephone  corporation,  domestic  or  foreign, shall hereafter purchase
 [or], acquire, take, or hold any part of the capital stock of any  tele-
 graph  corporation  or telephone corporation organized or existing under
 the laws of this state unless authorized so to do by the commission.
   2. Save where stock shall be transferred or held for  the  purpose  of
 collateral security, no stock corporation, domestic or foreign, company,
 including, but not limited to, a limited liability company, association,
 including  a  joint  stock association, partnership, including a limited
 liability partnership, or person, other than a telegraph corporation  or
 telephone  corporation,  shall,  without  the consent of the commission,
 purchase [or], acquire, take, or hold more than ten [per centum] PERCENT
 of the voting capital stock issued by any telegraph corporation or tele-
 phone corporation organized or existing under or by virtue of  the  laws
 of  this  state.  Any corporation now lawfully holding a majority of the
 voting capital stock of any telegraph corporation  or  telephone  corpo-

 S. 2880                            36
 
 ration  may, without the consent of the commission, acquire and hold the
 remainder of the voting capital stock of such telegraph  corporation  or
 telephone corporation[,] or any portion thereof.
   3.  (A) No consent shall be given by the commission to the acquisition
 of any stock in accordance with this section unless it shall  have  been
 shown that such acquisition is in the public interest[; provided, howev-
 er,  that any], WHICH THE COMMISSION SHALL DETERMINE BY FINDING THAT THE
 PROPOSAL DOES ALL OF THE FOLLOWING,  TO  THE  EXTENT  DETERMINED  TO  BE
 APPLICABLE:
   (I) PROVIDES SHORT-TERM AND LONG-TERM ECONOMIC BENEFITS TO RATEPAYERS.
   (II)  EQUITABLY  ALLOCATES,  WHERE APPLICABLE AND WHERE THE COMMISSION
 HAS RATEMAKING AUTHORITY, THE TOTAL SHORT-TERM AND LONG-TERM  FORECASTED
 ECONOMIC  BENEFITS,  AS  DETERMINED  BY  THE COMMISSION, OF THE PROPOSED
 ACQUISITION, PURCHASE, SALE, TRANSFER, OR RETENTION BETWEEN SHAREHOLDERS
 AND RATEPAYERS. RATEPAYERS SHALL RECEIVE NOT LESS THAN FORTY PERCENT  OF
 THOSE BENEFITS.
   (III)  MAINTAINS  OR IMPROVES THE FINANCIAL CONDITION OF THE RESULTING
 TELEPHONE CORPORATIONS DOING BUSINESS IN THE STATE AND DOES  NOT  UNREA-
 SONABLY  ALLOCATE A TELEPHONE CORPORATION'S DEBT TO A DIVESTITURE ENTITY
 CREATED FROM AN EXISTING TELEPHONE CORPORATION. FOR THE PURPOSE OF  THIS
 SECTION,  A  DIVESTITURE  ENTITY  IS  A  BUSINESS  ENTITY CREATED BY THE
 ASSIGNMENT, EXCHANGE, SALE, OR OTHER TRANSFER  OF  SOME  OR  ALL  OF  AN
 EXISTING  TELEPHONE CORPORATION'S LINES, SYSTEM, OR WORKS TO A NEW TELE-
 PHONE CORPORATION.
   (IV) MAINTAINS OR IMPROVES THE QUALITY OF SERVICE TO TELEPHONE  CORPO-
 RATION RATEPAYERS IN THE STATE.
   (V)  MAINTAINS  OR IMPROVES THE QUALITY OF MANAGEMENT OF THE RESULTING
 TELEPHONE CORPORATION DOING BUSINESS IN THE STATE.
   (VI) IS FAIR AND REASONABLE TO AFFECTED TELEPHONE CORPORATION  EMPLOY-
 EES, INCLUDING BOTH UNION AND NON-UNION EMPLOYEES.
   (VII) IS FAIR AND REASONABLE TO THE MAJORITY OF ALL AFFECTED TELEPHONE
 CORPORATIONS.
   (VIII)  IS  BENEFICIAL, ON AN OVERALL BASIS, TO STATE AND LOCAL ECONO-
 MIES, AND TO THE COMMUNITIES IN THE AREA SERVED BY THE RESULTING  ENTITY
 AND  DOES  NOT  ALLOCATE  SUBSTANTIALLY  UNFUNDED PENSION OR HEALTH CARE
 OBLIGATIONS OR OTHER EMPLOYEE BENEFITS TO A RESULTING  TELEPHONE  CORPO-
 RATION.
   (IX)  PRESERVES THE JURISDICTION OF THE COMMISSION AND THE CAPACITY OF
 THE COMMISSION TO EFFECTIVELY REGULATE AND AUDIT  TELEPHONE  CORPORATION
 OPERATIONS IN THE STATE.
   (X)  PROVIDES  MITIGATION  MEASURES  TO  PREVENT SIGNIFICANTLY ADVERSE
 CONSEQUENCES WHICH MAY RESULT FROM SUCH ACQUISITION.
   (XI) DOES NOT ADVERSELY AFFECT COMPETITION. IN  MAKING  THIS  FINDING,
 THE  COMMISSION  SHALL  REQUEST  AN  ADVISORY  OPINION FROM THE ATTORNEY
 GENERAL REGARDING WHETHER OR NOT COMPETITION WILL BE ADVERSELY  AFFECTED
 AND  WHAT MITIGATORY MEASURES COULD BE ADOPTED TO AVOID ANY SUCH ADVERSE
 EFFECT.
   (B) ANY such consent, HOWEVER, shall be deemed to be  granted  by  the
 commission  ninety days after such corporation applies to the commission
 for its consent, unless the commission, or its designee, determines  and
 informs  the applicant in writing within such ninety day period that the
 public  interest  requires  the  commission's  review  and  its  written
 consent.   Nothing [herein] contained IN THIS SECTION shall be construed
 to prevent the holding of any stock heretofore lawfully acquired, nor to
 prevent, upon the surrender or exchange of  such  stock  pursuant  to  a
 reorganization  plan,  the purchase, acquisition, taking or holding of a

 S. 2880                            37
 
 proportionate amount of stock of any new corporation organized  to  take
 over, at foreclosure or other sale the property of any corporation whose
 stock  has  been thus surrendered or exchanged[;], but the proportion of
 the  voting  capital stock of the new corporation held by a stock corpo-
 ration, company, association, partnership or person and acquired  by  it
 by any such surrender or exchange of stock shall not without the consent
 of the commission exceed the proportion of the voting capital stock held
 by it in the former corporation.
   4.  Every contract, assignment, transfer, or agreement for transfer of
 any stock by or through any person or corporation  to  any  corporation,
 company,  association,  partnership  or  person,  in  violation  of  any
 provision of this chapter shall be void and of no effect,  and  no  such
 transfer  or  assignment  shall be made upon the books of any such tele-
 graph corporation or telephone corporation[,] or shall be recognized  as
 effective for any purpose.
   §  10.  The  executive  law is amended by adding a new section 32-a to
 read as follows:
   § 32-A. STATE AGENCY TELECOMMUNICATIONS RESOURCE MANAGEMENT. 1. WITHIN
 NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, ALL  STATE  AGENCIES,
 AS  SUCH  ARE  DEFINED  IN SUBDIVISION ONE OF SECTION THIRTY-TWO OF THIS
 ARTICLE, SHALL STUDY  AND  REPORT  UPON  THE  PHYSICAL  LOCATION  AND/OR
 FREQUENCY,  AND  AMOUNT  OF ALL EXCESS CAPACITY, WITHIN THE TELECOMMUNI-
 CATIONS INFRASTRUCTURE AND RADIO FREQUENCY BANDWIDTH OWNED, LICENSED  OR
 OTHERWISE CONTROLLED BY SUCH AGENCIES. TELECOMMUNICATIONS INFRASTRUCTURE
 IS  HEREIN DEFINED FOR THE PURPOSES OF THIS ARTICLE TO INCLUDE CONDUITS,
 DUCTS, POLES, WIRES, FIBER OPTIC  CABLE  AND/OR  LINES,  COAXIAL  CABLE,
 COPPER  TWISTED PAIR TELEPHONE LINES, RECEIVERS, TRANSMITTERS, BROADCAST
 RADIO  FREQUENCY  BANDWIDTH,  LASERS  AND  MULTIPLEXERS,   TRANSMITTERS,
 INSTRUMENTS,  MACHINES,  APPLIANCES  AND ALL DEVICES, REAL ESTATE, EASE-
 MENTS, APPARATUS, PROPERTY AND ROUTES  USED  AND/OR  OPERATED  BY  STATE
 AGENCIES.
   2.  ALL  STATE  AGENCIES  SHALL,  WITHIN ONE HUNDRED FIFTY DAYS OF THE
 EFFECTIVE DATE OF THIS SECTION, IDENTIFY THE EXCESS CAPACITY  AND  BAND-
 WIDTH  REPORTED  UPON  WHICH  MAY  BE LEASED ON A NON-DISCRIMINATORY AND
 COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES OR CERTIFIED TELECOMMU-
 NICATIONS CARRIERS THAT NEED SUCH CAPACITY TO PROVIDE BROADBAND SERVICES
 TO UNSERVED, UNDERSERVED AND DISTRESSED AREAS. SUCH EXCESS CAPACITY  AND
 BANDWIDTH SO IDENTIFIED SHALL BE REPORTED UPON.
   3.  ALL  STATE  AGENCIES  SHALL, WITHIN ONE HUNDRED EIGHTY DAYS OF THE
 EFFECTIVE DATE OF THIS SECTION, IDENTIFY AND REPORT UPON ALL  TELECOMMU-
 NICATIONS  SERVICES  PURCHASED, LEASED OR OTHERWISE USED BY THE AGENCIES
 THAT MAY BE USED IN  A  TELECOMMUNICATIONS  DEMAND  AGGREGATION  PROGRAM
 ADMINISTERED  BY  THE STATE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL
 PURSUANT TO SECTION FOUR THOUSAND ONE HUNDRED FIVE OF THE PUBLIC AUTHOR-
 ITIES LAW.
   4. (A) ALL STATE AGENCIES SHALL, WITHIN NINETY DAYS OF  THE  EFFECTIVE
 DATE  OF  THIS  SECTION,  INSTALL  TELECOMMUNICATIONS-GRADE  CONDUIT AND
 ANTENNA ATTACHMENT POINTS IN AND/OR ON ALL INFRASTRUCTURE PROJECTS NEWLY
 CONSTRUCTED OR UPGRADED BY SUCH AGENCIES, FOR LEASE ON A NON-DISCRIMINA-
 TORY AND COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES  OR  CERTIFIED
 TELECOMMUNICATIONS CARRIERS THAT NEED SUCH CAPACITY TO PROVIDE BROADBAND
 SERVICES  TO  UNSERVED, UNDERSERVED AND DISTRESSED AREAS. STATE AGENCIES
 MAY, HOWEVER, EXEMPT FROM THIS  REQUIREMENT  INFRASTRUCTURE  WHERE  SUCH
 INSTALLATIONS  COULD  POSE  A  THREAT  TO  PUBLIC SAFETY OR OTHERWISE BE
 UNREASONABLE. SUCH CONDUIT AND ANTENNA  ATTACHMENT  POINT  INSTALLATIONS
 SHALL BE REPORTED ON A SEMI-ANNUAL BASIS.

 S. 2880                            38
 
   (B)  THE STATE OFFICE OF GENERAL SERVICES SHALL, WITHIN NINETY DAYS OF
 THE EFFECTIVE DATE OF THIS SECTION, MAKE WIRELESS INTERNET ACCESS AVAIL-
 ABLE TO THE PUBLIC IN PUBLICLY ACCESSIBLE AND HIGHLY-TRAFFICKED AREAS OF
 THE STATE CAPITOL AND THE LEGISLATIVE OFFICE BUILDING,  AND  SUCH  OTHER
 PUBLICLY  ACCESSIBLE  AND  HIGHLY-TRAFFICKED  OFFICE OF GENERAL SERVICES
 MANAGED STATE BUILDINGS AS IS REASONABLE AND PRUDENT.
   5. ALL REPORTS  PROVIDED  FOR  IN  THIS  SECTION  SHALL  BE  DELIVERED
 INITIALLY, AND THEREAFTER ON AN ANNUAL BASIS, TO THE GOVERNOR, TEMPORARY
 PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF
 THE SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE
 ENERGY AND TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR  AND  RANKING
 MINORITY  MEMBER  OF  THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMIS-
 SIONS COMMITTEE, CHAIR OF THE PUBLIC SERVICE COMMISSION, COMMISSIONER OF
 THE DEPARTMENT OF ECONOMIC DEVELOPMENT, COMMISSIONER OF THE EMPIRE STATE
 DEVELOPMENT CORPORATION AND THE CHAIRPERSONS OF THE  BROADBAND  DEVELOP-
 MENT AND DEPLOYMENT COUNCIL AND BROADBAND DEVELOPMENT AUTHORITY.
   §  11.  The  public authorities law is amended by adding a new section
 2807 to read as follows:
   § 2807. ANNUAL TELECOMMUNICATIONS RESOURCES REPORTS BY AUTHORITIES. 1.
 STATE AUTHORITIES. (A) FOR THE PURPOSE  OF  FURNISHING  THE  STATE  WITH
 SYSTEMATIC  INFORMATION  REGARDING  THE  EXISTING, NEWLY CONSTRUCTED AND
 PLANNED TELECOMMUNICATIONS INFRASTRUCTURE RESOURCES OF  PUBLIC  AUTHORI-
 TIES,  EVERY STATE AUTHORITY CONTINUED OR CREATED BY THIS CHAPTER OR ANY
 OTHER CHAPTER OF THE LAWS OF THE STATE OF NEW YORK SHALL:
   (I) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  SUBMIT
 TO  THE  GOVERNOR,  TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE
 ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR AND RANKING
 MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,
 AND  THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,
 AUTHORITIES AND COMMISSIONS  COMMITTEE,  CHAIR  OF  THE  PUBLIC  SERVICE
 COMMISSION,  COMMISSIONER  OF  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT,
 COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT CORPORATION AND THE  CHAIRS
 OF THE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL AND BROADBAND DEVEL-
 OPMENT  AUTHORITY,  A  COMPLETE  AND DETAILED REPORT OR REPORTS UPON THE
 PHYSICAL LOCATION AND/OR FREQUENCY, AND AMOUNT OF ALL  EXCESS  CAPACITY,
 WITHIN  THE  TELECOMMUNICATIONS INFRASTRUCTURE AND RADIO FREQUENCY BAND-
 WIDTH OWNED, LICENSED OR OTHERWISE CONTROLLED BY STATE AUTHORITIES;
   (II) WITHIN ONE HUNDRED FIFTY DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  SUBMIT  TO  THE  GOVERNOR,  TEMPORARY PRESIDENT OF THE SENATE,
 SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE  SENATE  AND  ASSEMBLY,
 CHAIR  AND RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI-
 CATIONS COMMITTEE, AND THE CHAIR AND  RANKING  MINORITY  MEMBER  OF  THE
 ASSEMBLY  CORPORATIONS,  AUTHORITIES  AND  COMMISSIONS COMMITTEE, CHAIR-
 PERSON OF THE PUBLIC SERVICE COMMISSION, COMMISSIONER OF THE  DEPARTMENT
 OF  ECONOMIC  DEVELOPMENT,  COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT
 CORPORATION AND  THE  CHAIRPERSONS  OF  THE  BROADBAND  DEVELOPMENT  AND
 DEPLOYMENT  COUNCIL  AND BROADBAND DEVELOPMENT AUTHORITY, A COMPLETE AND
 DETAILED REPORT OR REPORTS IDENTIFYING THE EXCESS CAPACITY AND BANDWIDTH
 POSSESSED OR CONTROLLED BY STATE AUTHORITIES WHICH MAY BE  LEASED  ON  A
 NON-DISCRIMINATORY  AND COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES
 OR CERTIFIED TELECOMMUNICATIONS CARRIERS  THAT  NEED  SUCH  CAPACITY  TO
 PROVIDE  BROADBAND  SERVICES  TO  UNSERVED,  UNDERSERVED  AND DISTRESSED
 AREAS;
   (III) WITHIN ONE HUNDRED EIGHTY DAYS OF THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  IDENTIFY  AND  REPORT  UPON  ALL  TELECOMMUNICATIONS  SERVICES
 PURCHASED, LEASED OR OTHERWISE USED BY THE AUTHORITIES THAT MAY BE  USED

 S. 2880                            39
 
 IN  A  TELECOMMUNICATIONS DEMAND AGGREGATION PROGRAM ADMINISTERED BY THE
 STATE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL.
   (B)  ALL  STATE  AUTHORITIES  SHALL,  FROM  THE EFFECTIVE DATE OF THIS
 SECTION, INSTALL TELECOMMUNICATIONS-GRADE CONDUIT AND ANTENNA ATTACHMENT
 POINTS IN AND/OR ON ALL INFRASTRUCTURE  PROJECTS  NEWLY  CONSTRUCTED  OR
 UPGRADED BY SUCH AGENCIES, FOR LEASE ON A NON-DISCRIMINATORY AND COMMER-
 CIALLY  REASONABLE  BASIS  TO  PUBLIC ENTITIES OR CERTIFIED TELECOMMUNI-
 CATIONS CARRIERS THAT NEED SUCH CAPACITY TO PROVIDE  BROADBAND  SERVICES
 TO  UNSERVED,  UNDERSERVED  AND DISTRESSED AREAS. STATE AUTHORITIES MAY,
 HOWEVER, EXEMPT FROM THIS REQUIREMENT INFRASTRUCTURE WHERE SUCH  INSTAL-
 LATIONS  COULD  POSE A THREAT TO PUBLIC SAFETY OR OTHERWISE BE UNREASON-
 ABLE. SUCH CONDUIT AND ANTENNA ATTACHMENT POINT INSTALLATIONS  SHALL  BE
 REPORTED ON A SEMI-ANNUAL BASIS.
   (C)  ALL STATE AUTHORITY REPORTS PROVIDED FOR IN THIS SECTION SHALL BE
 DELIVERED INITIALLY, AND THEREAFTER ON AN ANNUAL BASIS UNLESS  OTHERWISE
 SPECIFIED,  TO  THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER
 OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR  AND
 RANKING  MINORITY  MEMBER  OF  THE  SENATE ENERGY AND TELECOMMUNICATIONS
 COMMITTEE, AND THE CHAIR AND RANKING MINORITY  MEMBER  OF  THE  ASSEMBLY
 CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE, CHAIR OF THE PUBLIC
 SERVICE  COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT CORPO-
 RATION AND THE CHAIRPERSONS OF THE BROADBAND DEVELOPMENT AND  DEPLOYMENT
 COUNCIL AND BROADBAND DEVELOPMENT AUTHORITY.
   (D)  TELECOMMUNICATIONS  INFRASTRUCTURE IS DEFINED FOR THE PURPOSES OF
 THIS ARTICLE TO INCLUDE CONDUITS, DUCTS, POLES, WIRES, FIBER OPTIC CABLE
 AND/OR LINES,  COAXIAL  CABLE,  COPPER  TWISTED  PAIR  TELEPHONE  LINES,
 RECEIVERS, TRANSMITTERS, BROADCAST RADIO FREQUENCY BANDWIDTH, LASERS AND
 MULTIPLEXERS,  TRANSMITTERS,  INSTRUMENTS,  MACHINES, APPLIANCES AND ALL
 DEVICES, REAL ESTATE, EASEMENTS, APPARATUS,  PROPERTY  AND  ROUTES  USED
 AND/OR OPERATED BY STATE AUTHORITIES AND LOCAL AUTHORITIES.
   2. LOCAL AUTHORITIES. (A) FOR THE PURPOSE OF FURNISHING THE STATE WITH
 SYSTEMATIC  INFORMATION  REGARDING  THE  EXISTING, NEWLY CONSTRUCTED AND
 PLANNED TELECOMMUNICATIONS INFRASTRUCTURE RESOURCES OF  PUBLIC  AUTHORI-
 TIES,  EVERY LOCAL AUTHORITY CONTINUED OR CREATED BY THIS CHAPTER OR ANY
 OTHER CHAPTER OF THE LAWS OF THE STATE OF NEW YORK SHALL:
   (I) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  SUBMIT
 TO  THE  GOVERNOR,  TEMPORARY  PRESIDENT  OF  THE SENATE, SPEAKER OF THE
 ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR AND RANKING
 MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,
 AND  THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,
 AUTHORITIES AND COMMISSIONS  COMMITTEE,  CHAIR  OF  THE  PUBLIC  SERVICE
 COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT CORPORATION AND
 THE  CHAIRS  OF  THE  BROADBAND  DEVELOPMENT  AND DEPLOYMENT COUNCIL AND
 BROADBAND DEVELOPMENT AUTHORITY,  A  COMPLETE  AND  DETAILED  REPORT  OR
 REPORTS  UPON  THE PHYSICAL LOCATION AND/OR FREQUENCY, AND AMOUNT OF ALL
 EXCESS CAPACITY, WITHIN THE TELECOMMUNICATIONS INFRASTRUCTURE AND  RADIO
 FREQUENCY  BANDWIDTH  OWNED,  LICENSED  OR OTHERWISE CONTROLLED BY STATE
 AUTHORITIES;
   (II) WITHIN ONE HUNDRED FIFTY DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  SUBMIT  TO  THE  GOVERNOR,  TEMPORARY PRESIDENT OF THE SENATE,
 SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE  SENATE  AND  ASSEMBLY,
 CHAIR  AND RANKING MINORITY MEMBER OF THE SENATE ENERGY AND TELECOMMUNI-
 CATIONS COMMITTEE, AND THE CHAIR AND  RANKING  MINORITY  MEMBER  OF  THE
 ASSEMBLY  CORPORATIONS,  AUTHORITIES AND COMMISSIONS COMMITTEE, CHAIR OF
 THE PUBLIC SERVICE COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOP-
 MENT CORPORATION AND THE CHAIRS OF THE BROADBAND DEVELOPMENT AND DEPLOY-

 S. 2880                            40
 
 MENT  COUNCIL  AND  BROADBAND  DEVELOPMENT  AUTHORITY,  A  COMPLETE  AND
 DETAILED REPORT OR REPORTS IDENTIFYING THE EXCESS CAPACITY AND BANDWIDTH
 POSSESSED  OR  CONTROLLED  BY LOCAL AUTHORITIES WHICH MAY BE LEASED ON A
 NON-DISCRIMINATORY  AND COMMERCIALLY REASONABLE BASIS TO PUBLIC ENTITIES
 OR CERTIFIED TELECOMMUNICATIONS CARRIERS  THAT  NEED  SUCH  CAPACITY  TO
 PROVIDE  BROADBAND  SERVICES  TO  UNSERVED,  UNDERSERVED  AND DISTRESSED
 AREAS;
   (III) WITHIN ONE HUNDRED EIGHTY DAYS OF THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  IDENTIFY  AND  REPORT  UPON  ALL  TELECOMMUNICATIONS  SERVICES
 PURCHASED, LEASED OR OTHERWISE USED BY THE AUTHORITIES THAT MAY BE  USED
 IN  A  TELECOMMUNICATIONS DEMAND AGGREGATION PROGRAM ADMINISTERED BY THE
 STATE BROADBAND DEVELOPMENT AND DEPLOYMENT COUNCIL.
   (B) ALL LOCAL AUTHORITIES SHALL,  FROM  THE  EFFECTIVE  DATE  OF  THIS
 SECTION, INSTALL TELECOMMUNICATIONS-GRADE CONDUIT AND ANTENNA ATTACHMENT
 POINTS  IN  AND/OR  ON  ALL INFRASTRUCTURE PROJECTS NEWLY CONSTRUCTED OR
 UPGRADED BY SUCH AGENCIES, FOR LEASE ON A NON-DISCRIMINATORY AND COMMER-
 CIALLY REASONABLE BASIS TO PUBLIC  ENTITIES  OR  CERTIFIED  TELECOMMUNI-
 CATIONS  CARRIERS  THAT NEED SUCH CAPACITY TO PROVIDE BROADBAND SERVICES
 TO UNSERVED, UNDERSERVED AND DISTRESSED AREAS.  LOCAL  AUTHORITIES  MAY,
 HOWEVER,  EXEMPT FROM THIS REQUIREMENT INFRASTRUCTURE WHERE SUCH INSTAL-
 LATIONS COULD POSE A THREAT TO PUBLIC SAFETY OR OTHERWISE  BE  UNREASON-
 ABLE.  SUCH  CONDUIT AND ANTENNA ATTACHMENT POINT INSTALLATIONS SHALL BE
 REPORTED ON A SEMI-ANNUAL BASIS.
   (C) ALL LOCAL AUTHORITY REPORTS PROVIDED FOR IN THIS SECTION SHALL  BE
 DELIVERED  INITIALLY, AND THEREAFTER ON AN ANNUAL BASIS UNLESS OTHERWISE
 SPECIFIED, TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE  SENATE,  SPEAKER
 OF  THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND ASSEMBLY, CHAIR AND
 RANKING MINORITY MEMBER OF  THE  SENATE  ENERGY  AND  TELECOMMUNICATIONS
 COMMITTEE,  AND  THE  CHAIR  AND RANKING MINORITY MEMBER OF THE ASSEMBLY
 CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE, CHAIRPERSON OF  THE
 PUBLIC  SERVICE COMMISSION, COMMISSIONER OF THE EMPIRE STATE DEVELOPMENT
 CORPORATION AND THE CHAIRPERSONS OF THE  BROADBAND  DEVELOPMENT  COUNCIL
 AND BROADBAND AUTHORITY.
   3.  STATE  AND  LOCAL  AUTHORITIES.  TO  THE  EXTENT  PRACTICABLE, AND
 CONSISTENT WITH APPLICABLE DIRECTIVES OR  GUIDELINES  BY  THE  EMERGENCY
 PREPAREDNESS  COMMISSION,  STATE  EMERGENCY  MANAGEMENT OFFICE AND STATE
 OFFICE OF HOMELAND SECURITY, EACH STATE AND LOCAL AUTHORITY  SHALL  MAKE
 ACCESSIBLE  TO  THE PUBLIC VIA ITS OFFICIAL INTERNET WEB SITE DOCUMENTA-
 TION PERTAINING TO THE TELECOMMUNICATIONS INFRASTRUCTURE RESOURCES OWNED
 BY, LEASED BY, USED BY OR OTHERWISE CONTROLLED BY SUCH STATE  AND  LOCAL
 AUTHORITIES.
   §  12.  The public service law is amended by adding a new section 90-a
 to read as follows:
   § 90-A. STATEMENT OF POLICY. 1. THE STATE OF NEW YORK'S  LONG-STANDING
 POLICY,  CODIFIED IN THIS SECTION, IS THAT CERTAIN COMMUNICATIONS TOOLS,
 AND PARTICULARLY TELEPHONE SERVICES, I.E.  ESSENTIAL  SERVICES,  ARE  SO
 FUNDAMENTAL  THAT  IT  IS  NOT  IN  THE  PUBLIC  INTEREST TO LEAVE THEIR
 PROVISION TO THE VAGARIES OF THE  MARKETPLACE  ALONE.  FURTHERMORE,  THE
 LEGISLATURE  DECLARES THAT IT IS IN THE PUBLIC INTEREST THAT SUCH ESSEN-
 TIAL SERVICES BE MADE AND MAINTAINED UNIVERSALLY ACROSS NEW  YORK.  SUCH
 TOOLS  AND  SERVICES HAVE, OVER TIME, AND INCREASINGLY NOW, SHAPED CITI-
 ZENS' ABILITY TO PARTICIPATE  IN  CIVIC  AFFAIRS,  TO  ACQUIRE  LEARNING
 SKILLS  NEEDED  FOR THEIR ECONOMIC SUCCESS AND THAT OF THE STATE, AND TO
 ENJOY THE RICH AND UNPARALLELED SOCIAL AND CULTURAL LIFE THAT IS A VITAL
 PART OF NEW YORK  STATE'S  ECONOMY.  THE  STATE'S  GOALS  FOR  UNIVERSAL
 SERVICE  ARE TO FURTHER AND PROTECT THE PUBLIC INTEREST BY PROMOTING THE

 S. 2880                            41
 
 AVAILABILITY OF QUALITY SERVICES AT  JUST,  REASONABLE,  AND  AFFORDABLE
 RATES;  TO  ADVANCE  THE AVAILABILITY OF SUCH SERVICES TO ALL CONSUMERS,
 INCLUDING THOSE IN LOW INCOME, RURAL, INSULAR, AND HIGH  COST  AREAS  AT
 RATES  THAT  ARE  REASONABLY COMPARABLE TO THOSE CHARGED IN HIGH-DENSITY
 URBAN AREAS; AND TO INCREASE ACCESS TO, AND THE  UBIQUITY  OF,  ADVANCED
 TELECOMMUNICATIONS  SERVICES AVAILABLE TO THE PUBLIC IN AN EQUITABLE AND
 NONDISCRIMINATORY MANNER. ALL TELEPHONE CORPORATIONS AND  PROVIDERS  AND
 RESELLERS  OF  TELECOMMUNICATIONS  SERVICES  SHOULD  CONTRIBUTE  TO CORE
 PUBLIC SAFETY AND PUBLIC INTEREST GOALS TO THE EXTENT ALLOWABLE BY  LAW.
 AT  A  MINIMUM,  THESE  INCLUDE  EQUIVALENT  UNIVERSAL  SERVICE SUPPORT,
 PROVISION AND SUPPORT FOR E911, DISABILITY ACCESS, CONSUMER PROTECTIONS,
 AND EQUITABLE TAXATION. EFFECTIVE PUBLIC PROGRAMS MUST BE MADE AVAILABLE
 WHERE COMPETITIVE FORCES DO NOT RESULT IN THE  DEPLOYMENT,  MAINTENANCE,
 OR  RECONSTRUCTION  OF  AFFORDABLE,  HIGH-QUALITY,  AND RELIABLE ADVANCE
 TELECOMMUNICATIONS CAPABILITY ACROSS ALL GEOGRAPHIC  REGIONS  AND  DEMO-
 GRAPHIC  SEGMENTS  OF  THE  STATE.  TELECOMMUNICATIONS  NETWORKS MUST BE
 INTER-OPERABLE, BASED ON OPEN STANDARDS, RELIABLE, SURVIVABLE, DIVERSELY
 PATHED, AS WIDELY INTERCONNECTED AS IS REASONABLE,  ACCESSIBLE  FOR  ALL
 USERS AS PROVIDED FOR BY LAW, INCLUDING BUT NOT LIMITED TO THE AMERICANS
 WITH  DISABILITIES  ACT,  AND  ALL  APPLICABLE FEDERAL, STATE, AND LOCAL
 REGULATIONS, AND MUST MEET BASIC REQUIREMENTS CONCERNING PUBLIC  SAFETY,
 CONSUMER PROTECTION, AND RELEVANT SOCIAL AND MORAL OBLIGATIONS.
   2. FOR THE PURPOSES OF THIS SECTION:
   (A)  THE  TERM  "UNIVERSAL SERVICE" MEANS THAT CERTAIN BASIC TELEPHONE
 FACILITIES,  SERVICES,  AND  INSTRUMENTALITIES,  KNOWN   AS   "ESSENTIAL
 SERVICES",  SHALL  BE ACCESSIBLE TO ANY PERSON, CORPORATION, OR LOCALITY
 IN NEW YORK STATE AT COSTS REASONABLY COMPARABLE  TO  RATES  CHARGED  IN
 URBAN  AREAS AND LOW-COST AREAS, SO THAT THERE SHALL NOT BE ANY UNDUE OR
 UNREASONABLE PREFERENCE OR ADVANTAGE  TO  ANY  PERSON,  CORPORATION,  OR
 LOCALITY.
   (B)  THE  TERM  "ESSENTIAL  SERVICES" MEANS THE PROVISION BY TELEPHONE
 CORPORATIONS OF VOICE GRADE ACCESS TO AND  ACROSS  THE  PUBLIC  SWITCHED
 TELEPHONE  NETWORK,  WITH THE ABILITY TO PLACE AND RECEIVE CALLS; TOUCH-
 TONE  SERVICE;  SINGLE-PARTY  SERVICE;  ACCESS  TO  EMERGENCY  SERVICES,
 INCLUDING 911 AND E911 (WHICH IDENTIFIES A CALLER'S LOCATION); ACCESS TO
 OPERATOR SERVICES; ACCESS TO INTER-EXCHANGE SERVICES; ACCESS TO DIRECTO-
 RY  ASSISTANCE;  ACCESS TO "LIFELINE" SERVICES, OR OTHER SERVICES EQUIV-
 ALENT IN PRICE AND QUALITY  FOR  QUALIFYING  LOW-INCOME  CONSUMERS;  AND
 ACCESS  TO  ALL  OF  SUCH  OTHER SERVICES AS MAY BE MANDATED BY FEDERAL,
 STATE, AND LOCAL LAW.
   3. WITHIN THIRTY DAYS OF THE DATE ON WHICH THE COMMISSION  HAD  ACTUAL
 KNOWLEDGE,  OR  SHOULD  REASONABLY  HAVE  KNOWN OR BEEN INFORMED, OF THE
 OCCURRENCE, OR APPEARANCE OF THE PROXIMATE OCCURRENCE,  OF  A  PURCHASE,
 ACQUISITION,  TAKING,  OR  OTHER TRANSFER OF CONTROL OR OWNERSHIP OF THE
 CAPITAL STOCK OF A  TELEGRAPH  OR  TELEPHONE  CORPORATION  ORGANIZED  OR
 EXISTING  UNDER  THE  LAWS  OF  THIS  STATE  WITHIN THE CONTEMPLATION OF
 SECTION ONE HUNDRED OF THIS ARTICLE OR PARAGRAPH (B)  OF  THIS  SUBDIVI-
 SION,  THE  COMMISSION SHALL COMPILE AND PUBLISH A REPORT ON THE EFFECT,
 IF ANY, OF SUCH TRANSFER OF CONTROL UPON UNIVERSAL SERVICE IN THE STATE.
 SUCH REPORT SHALL BE KNOWN AS THE "UNIVERSAL SERVICE  IMPACT  ANALYSIS",
 AND  SHALL BE ISSUED BEFORE THE COMMISSION MAY VOTE UPON THE APPROVAL OF
 SUCH OCCURRENCE. IF, ON THE EFFECTIVE DATE OF THIS SUBDIVISION, THERE IS
 A PROCEEDING BEFORE THE COMMISSION WITHIN THE CONTEMPLATION OF  SUBDIVI-
 SION  ONE  OF  THIS  SECTION, THEN THE COMMISSION SHALL HAVE THIRTY DAYS
 FROM SUCH EFFECTIVE DATE TO ISSUE ITS UNIVERSAL SERVICE IMPACT  ANALYSIS

 S. 2880                            42
 
 REPORT. SUCH UNIVERSAL SERVICE IMPACT ANALYSIS REPORT SHALL INCLUDE, BUT
 NOT BE LIMITED TO:
   (A)  AN  ANALYSIS OF THE EFFECTS UPON PRICING OF TELEPHONE SERVICES IN
 HIGH-COST AND RURAL AND LOW-INCOME AREAS AFFECTED BY  SUCH  TRANSFER  OF
 CONTROL;
   (B) AN ANALYSIS OF THE ACTUAL OR POTENTIAL EFFECTS OF SUCH TRANSFER OF
 CONTROL  UPON  NETWORK  RELIABILITY  AND  SERVICE  QUALITY  IN  THE AREA
 AFFECTED BY SUCH TRANSFER OF CONTROL;
   (C) AN ANALYSIS OF THE ACTUAL OR POTENTIAL EFFECTS  UPON  NEW  SERVICE
 PROVISION  IN  RURAL  AND HIGH-COST AND LOW-INCOME AREAS WITHIN THE AREA
 AFFECTED BY SUCH TRANSFER OF CONTROL.
   FOR THE PURPOSES OF  TRIGGERING  SUCH  REPORTING  REQUIREMENT  BY  THE
 COMMISSION,  THERE  SHALL  BE  A REBUTTABLE PRESUMPTION OF A TRANSFER OF
 CONTROL OR OWNERSHIP UPON THE ACQUISITION OR ACCUMULATION BY ANY  PERSON
 OR  GROUP  OF  PERSONS  OF  TEN  PERCENT OR MORE OF THE SHARES OF, OR OF
 COMPARABLE OWNERSHIP INTEREST IN, A TELEGRAPH OR TELEPHONE  CORPORATION.
 SUCH  TRANSFER  OF  CONTROL  OR ACQUISITION OR ACCUMULATION OF OWNERSHIP
 INTERESTS SHALL ALSO BE DEEMED  TO  OCCUR  UPON  THE  SALE,  ASSIGNMENT,
 TRANSFER,  DIVESTITURE OF A PORTION OF A BUSINESS ENTITY, LEASE OR OTHER
 DISPOSAL, EITHER IN WHOLE OR PART, EITHER  BY  INVOLUNTARY  SALE  OR  BY
 VOLUNTARY SALE, MERGER, OR CONSOLIDATION, OR BANKRUPTCY, OF ANY TITLE TO
 SUCH  TELEGRAPH  OR TELEPHONE CORPORATION, EITHER LEGAL OR EQUITABLE, OR
 OF THE LINES OR OTHER NETWORK ELEMENTS OF SUCH  TELEGRAPH  OR  TELEPHONE
 CORPORATION  WITHIN  THREE  OR  MORE  LOCAL  ACCESS  AND TRANSPORT AREAS
 (LATAS) OR COUNTIES.
   4. UPON THE COMPLETION OF THE REPORT UNDER SUBDIVISION THREE  OF  THIS
 SECTION  THE  COMMISSION  SHALL  HAVE POWER AND THE DUTY TO ESTABLISH BY
 RULE OR REGULATION, WITHIN NINETY DAYS OF THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  SUCH  CHARGES,  EXCHANGES  OF  FUNDS, FEES, METHODOLOGIES, AND
 MODALITIES AS ARE NECESSARY AND CONVENIENT TO  PROMOTE  AND  ENSURE  THE
 STATEWIDE  UNIVERSAL  AVAILABILITY OF HIGH-QUALITY ESSENTIAL SERVICES AT
 JUST, REASONABLE, AND AFFORDABLE RATES; TO ADVANCE THE  AVAILABILITY  OF
 SUCH  SERVICES  TO  ALL CONSUMERS, INCLUDING THOSE IN LOW INCOME, RURAL,
 INSULAR, AND HIGH COST AREAS AT RATES THAT ARE REASONABLY COMPARABLE  TO
 THOSE  CHARGED  IN  LOW COST AND URBAN AREAS; AND TO INCREASE ACCESS TO,
 AND THE UBIQUITY OF, ADVANCED TELECOMMUNICATIONS SERVICES  AVAILABLE  TO
 THE  PUBLIC IN AN EQUITABLE AND NONDISCRIMINATORY MANNER. THE COMMISSION
 SHALL HAVE POWER AND THE DUTY TO PROMULGATE SUCH RULES OR REGULATIONS AS
 ARE NECESSARY AND CONVENIENT TO EFFECTUATE THE STATE POLICIES SET  FORTH
 IN THIS SECTION.
   §  13.  The public service law is amended by adding a new section 90-b
 to read as follows:
   § 90-B.  REPORTS, HEARINGS AND INVESTIGATIONS STUDYING MATTERS IN  THE
 PUBLIC INTEREST. THE LEGISLATURE FINDS THAT UNIVERSAL ACCESS TO AFFORDA-
 BLE  TELEPHONE  SERVICE HAS BEEN A LONG-STANDING TRADITION AND POLICY OF
 THE STATE. HOWEVER, THIS POLICY HAS COME INTO QUESTION WITH PROPOSALS BY
 INCUMBENT CARRIERS TO SELL SIGNIFICANT PORTIONS OF THE UPSTATE TELEPHONE
 NETWORK TO COMPANIES WITH LITTLE OR NO BACKGROUND IN  THE  PROVISION  OF
 TELEPHONE  SERVICE.  UNIVERSAL SERVICE, LONG TAKEN FOR GRANTED, MUST NOW
 BE REEVALUATED TO ENSURE THAT ANY FUTURE UPSTATE TELEPHONE CARRIERS WILL
 MAINTAIN THIS  POLICY.  THEREFORE,  THE  DEPARTMENT  SHALL  PREPARE  AND
 SUBMIT,  ON  OR  BEFORE AUGUST FIRST, TWO THOUSAND NINETEEN, A REPORT TO
 THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
 BLY,  MINORITY  LEADERS  OF  THE  SENATE AND ASSEMBLY, CHAIR AND RANKING
 MINORITY MEMBER OF THE SENATE ENERGY AND  TELECOMMUNICATIONS  COMMITTEE,
 AND  THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,

 S. 2880                            43
 
 AUTHORITIES AND COMMISSIONS COMMITTEE. THE  REPORT  SHALL  EVALUATE  THE
 IMPLICATIONS OF A SALE OF A PORTION OF THE UPSTATE TELEPHONE NETWORK FOR
 THE  POLICY  OF UNIVERSAL ACCESS TO AFFORDABLE SERVICE. THE REPORT SHALL
 FURTHER  EVALUATE  THE  STANDARDS BY WHICH THE DEPARTMENT WILL ANALYZE A
 PROPOSED SALE.
   § 14. The public service law is amended by adding a new  section  90-c
 to read as follows:
   §  90-C. LEGISLATIVE FINDINGS. 1. THE LEGISLATURE FINDS THAT DEPLOYING
 BROADBAND NETWORKS AND ADVANCED COMMUNICATIONS SERVICES  THROUGHOUT  NEW
 YORK  WILL  ENABLE  CONTINUED IMPROVEMENTS IN HEALTHCARE, PUBLIC SAFETY,
 EDUCATION, ECONOMIC DEVELOPMENT AND  THE  CREATION  OF  JOBS,  AND  WILL
 FACILITATE  THE  FREE  EXCHANGE OF IDEAS THAT IS VITAL TO DEMOCRACY. THE
 LEGISLATURE FURTHER FINDS THAT NEW YORK'S FINANCIAL SERVICES  COMMUNITY,
 PUBLISHING COMMUNITY, HIGHER EDUCATION COMMUNITY, HIGH-TECHNOLOGY COMMU-
 NITY  AND OTHER WORLD-CLASS BUSINESS COMMUNITIES HAVE PLACED NEW YORK AT
 THE FOREFRONT OF NUMEROUS VITAL INDUSTRIES, BUT THAT TO CONTINUE TO BE A
 WORLD-CLASS LEADER, NEW YORK MUST  ADOPT  POLICIES  AND  PRACTICES  THAT
 PROMOTE  THE ROLL-OUT AND FURTHER DEVELOPMENT OF BROADBAND. FINALLY, THE
 LEGISLATURE FINDS THAT RURAL AREAS OF NEW YORK LACK THE  MULTIPLE  TELE-
 COMMUNICATIONS CONNECTIONS NECESSARY TO LINK TO OUTSIDE RESOURCES DURING
 TIMES  OF  EMERGENCY, THAT BROADBAND NETWORKS ARE NECESSARY TO CREATE OR
 FACILITATE SUSTAINABLE TELEMEDICINE NETWORKS THAT CONNECT  RURAL  HEALTH
 CLINICS  TO  URBAN MEDICAL CENTERS, AND THAT INCREASED GOVERNMENT USE OF
 BROADBAND NETWORKS AND ADVANCED  COMMUNICATIONS  SERVICES  WILL  ENHANCE
 GOVERNMENT  OPERATIONS  THROUGH  TELEMEDICINE  FOR  HEALTHCARE, DISTANCE
 LEARNING FOR EDUCATION, REDUNDANT  AND  DIVERSELY-PATHED  COMMUNICATIONS
 NETWORKS  FOR  PUBLIC SAFETY COMMUNICATIONS AND TO GENERALLY PROTECT THE
 HEALTH AND WELFARE OF THE STATE AND ITS CITIZENS.
   2. THE DEPARTMENT SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF  THE
 EFFECTIVE  DATE  OF  THIS  SECTION,  A REPORT TO THE GOVERNOR, TEMPORARY
 PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY,  MINORITY  LEADERS  OF
 THE SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE
 ENERGY  AND  TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR AND RANKING
 MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,  AUTHORITIES  AND  COMMIS-
 SIONS  COMMITTEE.  THE  REPORT  SHALL  STUDY IN DETAIL THE ACTUAL RETAIL
 AVAILABILITY OF WIRELINE, WIRELESS CELLULAR AND FIXED-WIRELESS BROADBAND
 COMMUNICATIONS MODALITIES ACROSS THE STATE OF NEW YORK, AND SHALL ORGAN-
 IZE THE DATA OF SUCH AVAILABILITY BY CENSUS TRACT.
   3. THE DEPARTMENT, ACTING TOGETHER WITH THE EMPIRE  STATE  DEVELOPMENT
 CORPORATION,  SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF THE EFFEC-
 TIVE DATE OF THIS SECTION, A REPORT TO THE GOVERNOR, TEMPORARY PRESIDENT
 OF THE SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF  THE  SENATE
 AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE ENERGY AND
 TELECOMMUNICATIONS  COMMITTEE, AND THE CHAIR AND RANKING MINORITY MEMBER
 OF THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE. THE
 REPORT SHALL LIST ALL FEDERAL, STATE, LOCAL, FOUNDATION, PRIVATE  SECTOR
 AND  OTHER FUNDS, GRANTS, LOANS AND OTHER FUNDING MECHANISMS THAT CAN BE
 APPLIED FOR AND USED BY THE  BROADBAND  DEVELOPMENT  AUTHORITY,  BY  THE
 STATE,  BY  MUNICIPAL  CORPORATIONS,  BY  NONPROFIT  CORPORATIONS AND BY
 PRIVATE SECTOR BUSINESSES TO FUND BROADBAND DEPLOYMENT IN NEW YORK.
   4. THE DEPARTMENT, ACTING TOGETHER WITH THE OFFICE FOR TECHNOLOGY  AND
 THE  OFFICE  OF  CYBER SECURITY AND CRITICAL INFRASTRUCTURE COORDINATION
 ("CSCIC") SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF THE  EFFECTIVE
 DATE  OF  THIS SECTION, A REPORT TO THE GOVERNOR, TEMPORARY PRESIDENT OF
 THE SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE  AND
 ASSEMBLY,  CHAIR  AND  RANKING  MINORITY MEMBER OF THE SENATE ENERGY AND

 S. 2880                            44
 
 TELECOMMUNICATIONS COMMITTEE, AND THE CHAIR AND RANKING MINORITY  MEMBER
 OF THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE. THE
 REPORT SHALL DETERMINE THE LOCATION OF ALL AREAS OF THE STATE, BY CENSUS
 TRACT,  THAT  DO  NOT  HAVE GENERALLY AND READILY COMMERCIALLY AVAILABLE
 RETAIL ACCESS TO BROADBAND  WIRELINE  FACILITIES  AND/OR  FIXED-WIRELESS
 BROADBAND FACILITIES ("UNSERVED AREAS"); THE REPORT SHALL ALSO DETERMINE
 ALL  AREAS OF THE STATE, BY CENSUS TRACT, THAT DO NOT HAVE GENERALLY AND
 READILY COMMERCIALLY  AVAILABLE  RETAIL  ACCESS  TO  BROADBAND  WIRELINE
 FACILITIES  AND/OR  FIXED-WIRELESS BROADBAND FACILITIES FROM TWO OR MORE
 TELECOMMUNICATIONS  OR  ADVANCED   COMMUNICATIONS   SERVICES   PROVIDERS
 ("UNDERSERVED  AREAS");  THE REPORT SHALL ALSO DETERMINE THE LOCATION OF
 ALL AREAS OF THE STATE, BY CENSUS TRACT,  THAT  QUALIFY  AS  "DISTRESSED
 AREAS"  UNDER  THIS  CHAPTER, AND EITHER DO OR DO NOT HAVE GENERALLY AND
 READILY COMMERCIALLY  AVAILABLE  RETAIL  ACCESS  TO  BROADBAND  WIRELINE
 FACILITIES AND/OR FIXED-WIRELESS BROADBAND FACILITIES; THE REPORT SHALL,
 FURTHERMORE,  ASSESS  AND SET FORTH WITH SPECIFICITY THE AGGREGATE UNMET
 DEMAND FOR BROADBAND SERVICES IN UNSERVED,  UNDERSERVED  AND  DISTRESSED
 AREAS  BY  CENSUS TRACT AND BY BLOCK, LOT OR OTHER UNIQUELY IDENTIFIABLE
 ADMINISTRATIVE CHARACTERISTIC, AND SHALL ESTIMATE THE AMOUNT  OF  BROAD-
 BAND  CONNECTIVITY  THAT WOULD NEED TO BE BUILT OR OFFERED IN SUCH AREAS
 TO MEET THE UNMET DEMAND.  SUCH  REPORT  SHALL,  IN  ADDITION  TO  BEING
 SUBMITTED  TO  THE  GOVERNMENT OFFICES AND OFFICIALS SET FORTH ABOVE, BE
 USED TO CREATE A MAP IN STANDARD FORMAT TO BE DETERMINED BY THE NEW YORK
 GEOGRAPHIC INFORMATION SYSTEMS CLEARINGHOUSE AND CSCIC,  AND  CONSISTENT
 WITH  THE  LEGITIMATE  SECURITY CONCERNS THAT MAY BE EXPRESSED BY CSCIC,
 SUCH MAP SHALL BE A FULLY THREE-DIMENSIONAL REPRESENTATION OF ALL BROAD-
 BAND RESOURCES WITHIN THE STATE.
   § 15. The public service law is amended by adding a new  section  90-d
 to read as follows:
   § 90-D. LEGISLATIVE PURPOSE. 1. THE LEGISLATURE FINDS THAT:
   (A)  THE  PUBLIC  INTEREST IS FURTHERED AND PROTECTED BY ENSURING THAT
 NEW YORK'S EXISTING ENHANCED 9-1-1 ("E911") SYSTEM  FOR  WIRELINE  TELE-
 PHONE  SERVICE  AND  WIRELESS CELLULAR TELEPHONE SERVICE PROVIDE ALL THE
 AUTOMATIC NUMBER IDENTIFICATION ("ANI") AND AUTOMATIC LOCATION IDENTIFI-
 CATION ("ALI") NECESSARY TO PROTECT PUBLIC SAFETY AND RESPOND  TO  HOME-
 LAND  SECURITY  CONCERNS,  AND  PARTICULARLY SO IN RURAL AREAS AND ON OR
 NEAR NEW YORK'S COASTLINES;
   (B) EXISTING EMERGENCY SERVICES SYSTEMS CAN ISOLATE EMERGENCY RESPONSE
 AGENCIES THAT NEED INTER-CONNECTIVITY IN MEETING HOMELAND  SECURITY  AND
 PUBLIC SAFETY CRISES;
   (C)  ALL  9-1-1  CALLERS  IN  NEW  YORK,  AND THE FIRST RESPONDERS WHO
 RECEIVE AND ACT UPON SUCH CALLS, WOULD BE BETTER  ABLE  TO  ENHANCE  THE
 PUBLIC  SAFETY  WITH FLEXIBLE E911 NETWORKS THAT COULD BE INTERCONNECTED
 WITH LOCAL, REGIONAL AND NATIONAL INTERNET PROTOCOL BASED NETWORKS,  AND
 THAT  COULD  BE  FLEXIBLY  ADAPTED AND SCALED TO MEET THE CHALLENGES NEW
 COMMUNICATIONS TECHNOLOGY PLACE UPON E911 NETWORKS; AND
   (D) CLEAR LINES OF AUTHORITY AND ORGANIZATION IN  THE  DEPLOYMENT  AND
 ADMINISTRATION  OF  PUBLIC  SAFETY  ANSWERING POINTS SHOULD BE A GOAL OF
 STATE E911 POLICY.
   2. THE DEPARTMENT SHALL PREPARE AND SUBMIT, WITHIN NINETY DAYS OF  THE
 DATE THIS SECTION BECOMES LAW A REPORT TO THE GOVERNOR, TEMPORARY PRESI-
 DENT  OF  THE  SENATE,  SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE
 SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY  MEMBER  OF  THE  SENATE
 ENERGY  AND  TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR AND RANKING
 MINORITY MEMBER OF THE ASSEMBLY CORPORATIONS,  AUTHORITIES  AND  COMMIS-
 SIONS  COMMITTEE.  THE  REPORT SHALL STUDY IN DETAIL THE TECHNICAL CHAL-

 S. 2880                            45
 
 LENGES FACING AND POTENTIALLY DEGRADING THE EFFECTIVENESS OF NEW  YORK'S
 EXISTING  E911  NETWORKS,  AND SHALL STUDY AND REPORT UPON IN DETAIL THE
 NEXT-GENERATION TECHNOLOGICAL SOLUTIONS,  AND  NATIONAL  STANDARDS,  AND
 POTENTIALLY  AMELIORATIVE  SYSTEMS  AND  PROCEDURES PROPOSED BY NATIONAL
 PUBLIC SAFETY EXPERT ASSOCIATIONS SUCH  AS,  BUT  NOT  LIMITED  TO,  THE
 NATIONAL  EMERGENCY  NUMBERING  ASSOCIATION ("NENA"), THE ASSOCIATION OF
 PUBLIC-SAFETY COMMUNICATIONS OFFICIALS ("APCO"), AND THE NATIONAL PUBLIC
 SAFETY TELECOMMUNICATIONS COUNCIL.
   3. THE DEPARTMENT, ACTING TOGETHER WITH THE STATE EMERGENCY MANAGEMENT
 OFFICE, THE STATE OFFICE OF FIRE PREVENTION AND CONTROL, AND  THE  STATE
 POLICE,  SHALL  PREPARE  AND SUBMIT, WITHIN NINETY DAYS OF THE EFFECTIVE
 DATE OF THIS SECTION, A REPORT TO THE GOVERNOR, TEMPORARY  PRESIDENT  OF
 THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF THE SENATE AND
 ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF  THE  SENATE  ENERGY  AND
 TELECOMMUNICATIONS  COMMITTEE, AND THE CHAIR AND RANKING MINORITY MEMBER
 OF THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEE. THE
 REPORT SHALL EXAMINE THE CURRENT E911 SYSTEMS FUNDING MECHANISMS, STATE-
 WIDE, REGIONAL, COUNTY AND LOCAL ADMINISTRATION OF E911 FACILITIES,  THE
 EXTENT OR LACK THEREOF OF THE COMMISSION'S EXISTING REGULATORY AUTHORITY
 OF E911 ISSUES IN NEW YORK, AND SUCH OTHER PUBLIC SAFETY ISSUES DIRECTLY
 ARISING  FROM  THE CURRENT E911 IMPLEMENTATIONS IN NEW YORK AS IS NECES-
 SARY AND CONVENIENT TO PROTECT THE PUBLIC INTEREST.
   4. WITHIN SIXTY DAYS AFTER THE SUBMISSION OF THE REPORTS  REQUIRED  BY
 SUBDIVISIONS TWO AND THREE OF THIS SECTION, THE COMMISSION SHALL CONVENE
 A  SERIES OF PUBLIC HEARINGS TO DISCUSS NEW YORK'S EXISTING E911 SYSTEMS
 AND NETWORKS AND THE FINDINGS OF SUCH REPORTS IN NEW YORK TO CLARIFY THE
 PUBLIC POLICY ISSUES INVOLVED THAT MIGHT REQUIRE LEGISLATIVE ATTENTION.
   § 16. The public service law is amended by adding a new  section  90-e
 to read as follows:
   §  90-E.  WIRELESS  TELEPHONE  QUALITY,  RELIABILITY AND AFFORDABILITY
 STUDY. 1.  WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF  THIS
 SECTION, THE COMMISSION SHALL STUDY AND REPORT ON THE QUALITY, RELIABIL-
 ITY,  AND  AFFORDABILITY,  OF  WIRELESS TELEPHONE SERVICE, INCLUDING WHY
 SUBDIVISION SIX OF SECTION FIVE OF THIS CHAPTER SHOULD NOT BE  REPEALED.
 THE  COMMISSION  SHALL ALSO, AS PART OF SUCH STUDY, DETERMINE WHAT RULES
 AND REGULATIONS SHALL BE NECESSARY:
   (A) TO ENHANCE CONSUMER  PROTECTIONS  CURRENTLY  OFFERED  TO  WIRELESS
 TELEPHONE SERVICES CONSUMERS;
   (B)  TO  ESTABLISH AND SAFEGUARD WIRELESS TELEPHONE SERVICE QUALITY SO
 THAT IT IS REASONABLY COMPARABLE TO THE WIRELINE SERVICE QUALITY  NECES-
 SARY TO SAFEGUARD CITIZEN ACCESS TO E911; AND
   (C)  TO  PROTECT  THE  PUBLIC  INTEREST,  PUBLIC SAFETY AND HEALTH AND
 WELFARE.
   2. THE STUDY SHALL INCLUDE A DETAILED ANALYSIS EXAMINING  WHETHER  THE
 WIRELESS TELEPHONE SERVICE PROVIDERS' POLICIES INCLUDE ADEQUATE CONSUMER
 PROTECTIONS INCLUDING WHETHER:
   (A)  THERE  IS SUFFICIENT WRITTEN DISCLOSURE IN THE COMPANY'S CONSUMER
 SERVICE CONTRACT WITH RESPECT TO THE CALLING  AREA  FOR  THE  PLAN,  THE
 MONTHLY  ACCESS  FEE  OR  BASE  CHARGE;  THE  NUMBER  OF AIRTIME MINUTES
 INCLUDED IN THE PLAN; ANY NIGHT AND WEEKEND MINUTES INCLUDED IN THE PLAN
 OR OTHER DIFFERING CHARGES FOR DIFFERING TIME PERIODS AND THE TIME PERI-
 ODS WHEN NIGHT AND WEEKEND MINUTES OR OTHER CHARGES APPLY;  THE  CHARGES
 FOR  EXCESS  OR  ADDITIONAL  MINUTES;  WHETHER OR NOT, AND THE EXTENT TO
 WHICH, PER-MINUTE DOMESTIC OR INTERNATIONAL LONG  DISTANCE  CHARGES  ARE
 INCLUDED IN OTHER RATES, AND, TO THE EXTENT NOT INCLUDED, THE APPLICABLE
 PER-MINUTE LONG DISTANCE RATES; PER-MINUTE ROAMING OR OFF-NETWORK CHARG-

 S. 2880                            46
 
 ES; THE AMOUNT OF ANY ADDITIONAL TAXES, FEES, OR SURCHARGES THAT WILL BE
 COLLECTED OR RETAINED BY THE WIRELESS TELEPHONE SERVICE PROVIDER; IF THE
 PLAN  REQUIRES A FIXED-TERM CONTRACT, THE DURATION OF SUCH CONTRACT; THE
 AMOUNT  OF  ANY EARLY TERMINATION FEE AND THE CONDITIONS UNDER WHICH ANY
 SUCH EARLY TERMINATION FEE WOULD APPLY,  INCLUDING  THE  LENGTH  OF  ANY
 TRIAL PERIOD DURING WHICH NO EARLY TERMINATION FEE WOULD APPLY;
   (B) THE FIRST BILL RENDERED BY THE WIRELESS TELEPHONE SERVICE PROVIDER
 TO  THE  CUSTOMER SHALL INCLUDE NOTICE OF THE TERMS ON AND THE PERIOD OF
 TIME DURING WHICH SUCH SERVICE MAY  BE  TERMINATED  WITHOUT  PENALTY;  A
 STATEMENT  NOTIFYING  THE CUSTOMER THAT THE SERVICE INCLUDES BASIC WIRE-
 LESS 911 SERVICE; THE INFORMATION WHICH IS INCLUDED IN  THE  EDUCATIONAL
 PLAN FOR INFORMING THE PUBLIC ABOUT THE ENHANCED WIRELESS 911 SERVICE IN
 NEW  YORK  STATE  REQUIRED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED
 TWENTY-EIGHT OF THE COUNTY LAW  AND  WHICH  IS  AN  EXPLANATION  OF  THE
 ENHANCED  WIRELESS  911  SYSTEM  AND A PROGRESS REPORT ON THE COUNTY-BY-
 COUNTY IMPLEMENTATION OF THE STATEWIDE SYSTEM;  WEBSITE  INFORMATION  TO
 PERMIT  THE  CONSUMER  TO  ACCESS  SUCH  INFORMATION VIA THE INTERNET IN
 ACCORDANCE WITH SUBDIVISION EIGHT OF SECTION THREE HUNDRED  TWENTY-EIGHT
 OF  THE  COUNTY LAW; THE TOLL-FREE HOTLINE NUMBER BY WHICH SUCH INFORMA-
 TION MAY BE ACCESSED BY THE  CONSUMER  IN  ACCORDANCE  WITH  SUBDIVISION
 EIGHT OF SECTION THREE HUNDRED TWENTY-EIGHT OF THE COUNTY LAW; AND BASED
 UPON  CUSTOMER SUPPLIED INFORMATION REGARDING ANTICIPATED USAGE PATTERNS
 AND UPON SUCH CUSTOMER'S REQUEST, A GOOD FAITH ESTIMATE OF  THE  MONTHLY
 FIXED AND USAGE CHARGES AND ADDITIONAL TAXES, FEES, OR SURCHARGES AND OF
 THE ANTICIPATED TOTAL MONTHLY BILL FOR SUCH CUSTOMER UNDER SUCH PLAN;
   (C)  WIRELESS  TELEPHONE SERVICE PROVIDERS HAVE ADEQUATELY ESTABLISHED
 PROCEDURES FOR DISCLOSURE AT ANY POINT OF SALE OR OF CONTACT WITH POTEN-
 TIAL OR EXISTING RESIDENTIAL CUSTOMERS OF MAPS DISPLAYING  THE  WIRELESS
 TELEPHONE SERVICE PROVIDER'S OUTSIDE COVERAGE WITHIN THE STATE AND WITH-
 IN EACH COUNTY OF THE STATE IN WHICH SUCH PROVIDER PROVIDES SERVICE;
   (D)  WIRELESS  TELEPHONE  SERVICE  PROVIDERS CLEARLY DESCRIBE IN PLAIN
 LANGUAGE THE PRODUCTS AND SERVICES FOR WHICH CHARGES  ARE  IMPOSED,  AND
 SHALL  CONFORM  TO  FORMAT  STANDARDS  ESTABLISHED  BY  THE BOARD IN THE
 CUSTOMER'S MONTHLY BILL;
   (E) WIRELESS TELEPHONE SERVICE PROVIDERS OFFER CUSTOMERS A TRIAL PERI-
 OD WHICH AFTER THE FIRST BILL IS RENDERED TO SUCH CUSTOMER  FOR  MONTHLY
 SERVICE  FOLLOWING  SERVICE  ACTIVATION  AND  DURING  WHICH  PERIOD SUCH
 CUSTOMER MAY, AFTER PAYMENT FOR SERVICES USED,  TERMINATE  SUCH  SERVICE
 WITHOUT  INCURRING  ANY TERMINATION FEES OR CHARGES OR ANY OTHER PENALTY
 OF ANY KIND AND MAY, UPON THE RETURN OF ANY HANDSET BOUGHT OR LEASED  IN
 CONNECTION  WITH  SUCH SERVICE, RECEIVE A PRO RATA REFUND OF ANY AMOUNTS
 PAID FOR SUCH HANDSET;
   (F) WIRELESS TELEPHONE SERVICE PROVIDERS HAVE  ESTABLISHED  PROCEDURES
 FOR  THE  NOTIFICATION  OF RESIDENTIAL CUSTOMERS AT LEAST THIRTY DAYS IN
 ADVANCE OF ANY CHANGE IN RATES, CHARGES, TERMS, OR CONDITIONS OF SERVICE
 FOR SUCH CUSTOMERS; AND
   (G) WIRELESS TELEPHONE SERVICE PROVIDERS HAVE  ESTABLISHED  PROCEDURES
 FOR  THE  TIMELY  PRIOR  NOTICE TO RESIDENTIAL CUSTOMERS OF THE WIRELESS
 TELEPHONE SERVICE PROVIDER'S INTENT TO TERMINATE SUCH CUSTOMER'S SERVICE
 SUCH THAT, AT A MINIMUM, SUCH CUSTOMER IS FULLY ADVISED  OF  THE  AMOUNT
 WHICH MUST BE PAID TO MAINTAIN SERVICE, THE PROCEDURES AVAILABLE TO MAKE
 SUCH  PAYMENTS  SO  THAT  THE TERMINATION MAY BE AVOIDED AND THE BOARD'S
 COMPLAINT HANDLING PROCEDURES.
   3. THE COMMISSION SHALL DELIVER THE REPORT TO THE GOVERNOR,  TEMPORARY
 PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, MINORITY LEADERS OF
 THE SENATE AND ASSEMBLY, CHAIR AND RANKING MINORITY MEMBER OF THE SENATE

 S. 2880                            47
 
 ENERGY AND TELECOMMUNICATIONS  COMMITTEE,  AND  THE  CHAIR  AND  RANKING
 MINORITY  MEMBER  OF  THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMIS-
 SIONS COMMITTEE.
   4. THE COMMISSION SHALL, AT THE COMPLETION OF THE STUDY AND SIMULTANE-
 OUSLY  WITH THE DELIVERY OF THE REPORT, BEGIN A RULEMAKING PROCEEDING TO
 IMPLEMENT SUCH RULES AS MAY BE DETERMINED DURING THE STUDY TO BE  NECES-
 SARY AND CONVENIENT TO EFFECTUATE THE REQUIREMENTS OF SUBDIVISION ONE OF
 THIS SECTION.
   §  17.  The public service law is amended by adding a new section 90-f
 to read as follows:
   § 90-F.  LEGISLATIVE FINDINGS AND DECLARATION. 1. IT IS  HEREBY  FOUND
 AND  DECLARED  THAT  UNIVERSAL, AFFORDABLE AND HIGH QUALITY TELECOMMUNI-
 CATIONS SERVICES THAT MEET THE NEEDS OF INDIVIDUALS  AND  BUSINESSES  IN
 THE  STATE ARE NECESSARY AND VITAL TO THE WELFARE AND DEVELOPMENT OF OUR
 SOCIETY. IT IS, AND HAS BEEN  THE  GOAL  OF  THE  STATE  TO  ENSURE  THE
 UNIVERSAL  AVAILABILITY  AND  ACCESSIBILITY  OF HIGH QUALITY, AFFORDABLE
 TELECOMMUNICATIONS SERVICES TO ALL RESIDENTS AND BUSINESSES IN THE STATE
 AND TO ENSURE THAT PROVIDERS OF TELECOMMUNICATIONS SERVICES IN THE STATE
 PROVIDE  HIGH  QUALITY  CUSTOMER  SERVICE  AND  HIGH  QUALITY  TECHNICAL
 SERVICE.  ALL  NEW  YORK RESIDENTS SHOULD BE ABLE TO EXPECT TO RECEIVE A
 SIMILAR LEVEL OF HIGH QUALITY SERVICE REGARDLESS OF WHERE THEY  LIVE  OR
 WHO  PROVIDES THEIR SERVICE. THE COMMISSION MUST MAKE USE OF ITS MAXIMUM
 AUTHORITY TO PROTECT THE PUBLIC HEALTH, SAFETY AND WELFARE  BY  ENSURING
 THAT  TELEPHONE  SERVICE  QUALITY DOES NOT ERODE TO THE POINT THAT E-911
 SERVICE IS ENDANGERED BY PERSISTENT, EXTENDED, OR  CHRONIC  LOSS OF DIAL
 TONE, OR  BY  THE  FAILURE  OF  INTERMODAL  CARRIERS  TO  PROVIDE  E-911
 SERVICES, OR BY SUCH OTHER EROSION OF SERVICE QUALITY THAT WOULD TEND TO
 UNDERMINE  THE  ABILITY OF THE VARIOUS CITIZENS OF NEW YORK TO ENGAGE IN
 PROTECTED SPEECH OVER THE TELEPHONE NETWORKS AND  LINES  AND  FACILITIES
 AND EQUIPMENT UNDER THE JURISDICTION OF THE COMMISSION.
   2.  THE  COMMISSION  SHALL  COMMENCE A STUDY TO SURVEY SERVICE QUALITY
 PRACTICES AND STANDARDS OF PROVIDERS OF TELECOMMUNICATIONS SERVICES THAT
 WILL  LEAD  TO  LEGISLATIVE  AND  REGULATORY  RECOMMENDATIONS.  FOR  THE
 PURPOSES  OF  THIS  SECTION,  "TELECOMMUNICATIONS  SERVICE  PROVIDER" OR
 "PROVIDER OF TELECOMMUNICATIONS SERVICES" SHALL MEAN A TELEPHONE  CORPO-
 RATION,  OR OTHER PROVIDER OF TELEPHONE SERVICES, CERTIFIED IN THE STATE
 WITH THE AUTHORITY TO PROVIDE INTRASTATE TOLL AND LOCAL EXCHANGE SERVICE
 USING EITHER ITS OWN OR LEASED FACILITIES. THE COMMISSION SHALL ALSO, AS
 PART OF SUCH STUDY, DETERMINE WHAT RULES AND REGULATIONS SHALL BE NECES-
 SARY:
   (A) TO ENHANCE CONSUMER  PROTECTIONS  CURRENTLY  OFFERED  TO  WIRELINE
 TELEPHONE SERVICES CONSUMERS;
   (B)  TO  ESTABLISH AND SAFEGUARD WIRELINE TELEPHONE SERVICE QUALITY SO
 THAT IT IS REASONABLY COMPARABLE TO THE WIRELINE SERVICE QUALITY  NECES-
 SARY TO SAFEGUARD CITIZEN ACCESS TO E911; AND
   (C)  TO  PROTECT  THE  PUBLIC  INTEREST,  PUBLIC SAFETY AND HEALTH AND
 WELFARE.
   3. THE COMMISSION SHALL SPECIFICALLY  STUDY  SERVICE  AND  RELIABILITY
 ISSUES INCLUDING, BUT NOT LIMITED TO, AREAS OF THE STATE THAT EXPERIENCE
 CHRONIC  TELECOMMUNICATIONS OUTAGES, CUSTOMER SERVICE PROVIDERS OF TELE-
 COMMUNICATION  SERVICES,  INSTALLATION  OF  TELECOMMUNICATION   SERVICES
 ISSUES,  NETWORK PERFORMANCE, DATA COLLECTION BY PROVIDERS OF TELECOMMU-
 NICATIONS SERVICES, THE PREVIOUS EFFECT OF  PERFORMANCE-BASED  INCENTIVE
 PLANS  UPON  SERVICE QUALITY PROVIDED BY WIRELINE PROVIDERS, WHETHER AND
 HOW THE COMMISSION'S PRE-TWO THOUSAND ONE SERVICE QUALITY  AND  CONSUMER
 PROTECTION  RULES AND REGULATIONS CAN BE EXPANDED TO BE EQUALLY APPLICA-

 S. 2880                            48

 BLE TO ALL TELECOMMUNICATIONS PROVIDERS THAT PROVIDE  E911  AND  IN  ANY
 MARKETING  MATERIALS  PRESENT  THEIR COMPANY OR PRODUCT AS A REPLACEMENT
 FOR PRIMARY LINE TELEPHONE SERVICE USED BY CONSUMERS IN  NEW  YORK,  AND
 ISSUES  CONCERNING  REPORTING  UPON  SERVICE  QUALITY AND OTHER CONSUMER
 PROTECTION RELATED ISSUES, PROVIDED HOWEVER THAT SUCH REPORTING REQUIRE-
 MENTS SHALL BE  EXAMINED  BY  THE  COMMISSION  FOR  METHODS  THAT  MIGHT
 DECREASE THE COST OF COMPLIANCE BY SUCH TELECOMMUNICATIONS PROVIDERS.
   4.  THE  COMMISSION  SHALL  ISSUE  A  REPORT OF ITS FINDINGS INCLUDING
 LEGISLATIVE AND REGULATORY RECOMMENDATIONS  TO  ENHANCE  RELIABILITY  OF
 PROVIDERS  OF  TELEPHONE SERVICE TO THE GOVERNOR, TEMPORARY PRESIDENT OF
 THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE  SENATE  COMMITTEE  ON
 ENERGY  AND  TELECOMMUNICATIONS  AND  CHAIR OF THE ASSEMBLY COMMITTEE ON
 CORPORATIONS, AUTHORITIES AND  COMMISSIONS  WITHIN  ONE  HUNDRED  EIGHTY
 DAYS.
   5. THE COMMISSION SHALL, AT THE COMPLETION OF THE STUDY AND SIMULTANE-
 OUSLY  WITH THE DELIVERY OF THE REPORT, BEGIN A RULEMAKING PROCEEDING TO
 IMPLEMENT SUCH RULES AS MAY BE DETERMINED DURING THE STUDY TO BE  NECES-
 SARY AND CONVENIENT TO EFFECTUATE THE REQUIREMENTS OF SUBDIVISION TWO OF
 THIS SECTION.
   §  18. Applicability of other laws. The provisions of section seven of
 this act are intended to be consistent with the Federal  Cable  Act,  47
 U.S.C.   §521, et. seq., and nothing in this act shall be interpreted to
 prevent a voice provider, cable operator or  municipality  from  seeking
 clarification  of  its  rights and obligations under federal law. In the
 event that any cable operator obtains relief through judicial,  adminis-
 trative, or executive action from any obligation imposed under this act,
 or  from  any  obligation in a franchise agreement that gives rise to an
 obligation of another cable operator under this  act,  all  other  cable
 operators shall be deemed to be relieved of their obligations under this
 act within the same geographic area and to the same extent.
   § 19. Severability. If any provision of this act or its application to
 any  person  or  circumstance  is held invalid, this invalidity does not
 affect other provisions or applications of this act that  can  be  given
 effect without the invalid provision or application, and to this end the
 provisions of this act are declared to be severable.
   § 20. This act shall take effect immediately.